Total costs are $180,000 when 10,000 units are produced;of this amount,variable costs are $64,000.What are the total costs when 13,000 units are produced?
A)$199,200.
B)$214,800.
C)$234,000.
D)Some other amount.
E)Total costs cannot be calculated based on the information presented.

Question

Quizplus · Accepted Answer

Total costs = Variable costs + Fixed costsFixed costs = Total costs - Variable costsFixed costs = $180,000 - $64,000 = $116,000Total costs when 13,000 units are produced = Variable costs + Fixed costsTotal costs = $64,000 + $116,000 = $199,200

Total Costs Are $180,000 When 10,000 Units Are Produced;of This