An organization has the following costs at two production levels: Production level (units) 16,000 22,000 Total costs ($) 135,000 170,000 The variable cost per unit is constant within this range of production volume but there is a step up of $5,000 in the total fixed cost when activity exceeds 17,500 units. What is the total cost at an activity of 20,000 units?
An organization has the following costs at two production levels: Production level (units) 16,000 22,000 Total costs ($) 135,000 170,000 The variable cost per unit is constant within this range of production volume but there is a step up of $5,000 in the total fixed cost when activity exceeds 17,500 units. What is the total cost at an activity of 20,000 units?
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 11MC: Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable...
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![An organization has the following costs at two production levels:
Production level (units)
16,000 22,000
Total costs ($)
135,000 170,000
The variable cost per unit is constant within this range of production
volume but there is a step up of $5,000 in the total fixed cost when
activity exceeds 17,500 units.
What is the total cost at an activity of 20,000 units?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc4af3eaa-33d2-4c8c-a141-4c37d2165d5c%2Fddc6522d-3aea-415c-961d-236492f01300%2Fu22qesb_processed.png&w=3840&q=75)
Transcribed Image Text:An organization has the following costs at two production levels:
Production level (units)
16,000 22,000
Total costs ($)
135,000 170,000
The variable cost per unit is constant within this range of production
volume but there is a step up of $5,000 in the total fixed cost when
activity exceeds 17,500 units.
What is the total cost at an activity of 20,000 units?
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