A firm has produced the following budget for an activity level of 5,000 units:
Materials : 45,000
Direct labour : 60,000
Salaries : 25,000
Depreciation : 12,000
What would be the total cost for a level of activity of 7,500 units?
A) £164,500
B) £194,500
C) £213,000
D) £207,000
Correct Answer:
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