At a production level of 4,500 units,a project has total costs of $107,000.The variable cost per unit is $12.50.Assume the firm can increase production by 1,000 units without increasing its fixed costs.What will the total costs be if 4,800 units are produced?
A)$102,780
B)$104,640
C)$106,400
D)$108,000
E)$110,750

Question

Quizplus · Accepted Answer

Total cost = [$107,000 - ($12.50 × 4,500)] + (4,800 × $12.50) = $110,750

At a Production Level of 4,500 Units,a Project Has Total