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Buildit Ltd has ascertained that its total costs (T) can be estimated for any level of output (O) and sales (S) according to the following equation: T = (£50 × O + £10,000) + (£20 x S + £5,000) If the production level was 500 units and sales were 400 units, what wouid Buildit's fixed costs be? O A. £48,000 OB. £15,000 OC. £35,000 O D. £33,000

Buildit Ltd has ascertained that its total costs (T) can be estimated for any level of output (O) and sales (S) according to the following equation: T = (£50 × O + £10,000) + (£20 x S + £5,000) If the production level was 500 units and sales were 400 units, what wouid Buildit's fixed costs be? O A. £48,000 OB. £15,000 OC. £35,000 O D. £33,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Buildit Ltd has ascertained that its total costs (T) can be estimated for any level of output (O) and sales (S) according to the following equation: T = (£50 × O + £10,000) + (£20 × S + £5,000) If the production level was 500 units and sales were 400 units, what would Buildit's fixed costs be? O A. £48,000 O B. £15,000 O C. £35,000 O D. £33,000
Transcribed Image Text:Buildit Ltd has ascertained that its total costs (T) can be estimated for any level of output (O) and sales (S) according to the following equation: T = (£50 × O + £10,000) + (£20 × S + £5,000) If the production level was 500 units and sales were 400 units, what would Buildit's fixed costs be? O A. £48,000 O B. £15,000 O C. £35,000 O D. £33,000
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