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