Baker Corporation has provided the following production and total cost data for two levels of monthly production volume.The company produces a single product. The best estimate of the total cost to manufacture 6, 300 units is closest to:
A)$984, 060
B)$1, 031, 310
C)$1, 047, 060
D)$1, 078, 560

Question

Baker Corporation has provided the following production and total cost data for two levels of monthly production volume.The company produces a single product.  The best estimate of the total cost to manufacture 6, 300 units is closest to:
A)$984, 060 
B)$1, 031, 310 
C)$1, 047, 060 
D)$1, 078, 560

Quizplus · Accepted Answer

See earlier parts for the variable cost per unit and the total fixed cost.
Total cost = Total fixed cost + Total variable cost
= $630, 000 + ($66.20 per units × 6, 300 units)
= $630, 000 + $417, 060
= $1, 047, 060

Baker Corporation Has Provided the Following Production and Total Cost