Timchak Corporation reports that at an activity level of 9,900 units,its total variable cost is $919,116 and its total fixed cost is $259,974.What would be the total cost,both fixed and variable,at an activity level of 10,100 units? Assume that this level of activity is within the relevant range.
A) $1,197,658
B) $1,191,000
C) $1,179,090
D) $1,202,910

Question

Quizplus · Accepted Answer

Variable cost per unit = $919,116 ÷ 9,900 units = $92.84 unit
Total cost = Total fixed cost + Total variable cost
= $259,974 + ($92.84 per unit × 10,100 units)
= $259,974 + $937,684
= $1,197,658

Timchak Corporation Reports That at an Activity Level of 9,900