company is a highly automated manufacturer. At an activity level of 5,200 units, the company's total quality control st equal $186,000. This amount includes equipment lease cost of $50,000 (all fixed) and manual inspection cost of $62,400 (a riable). The remaining $73,600 of the total quality control cost consists of electronic testing (mixed). At an activity level of 7,200 its, electronic testing cost totals $89,600. ssume that the relevant range includes all of the activity levels mentioned in this problem for the AX27912 company. 6,000 units are projected for the next period, how much would the total expected quality control cost be? Multiple Choice $226.000
company is a highly automated manufacturer. At an activity level of 5,200 units, the company's total quality control st equal $186,000. This amount includes equipment lease cost of $50,000 (all fixed) and manual inspection cost of $62,400 (a riable). The remaining $73,600 of the total quality control cost consists of electronic testing (mixed). At an activity level of 7,200 its, electronic testing cost totals $89,600. ssume that the relevant range includes all of the activity levels mentioned in this problem for the AX27912 company. 6,000 units are projected for the next period, how much would the total expected quality control cost be? Multiple Choice $226.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:AX27912 company is a highly automated manufacturer. At an activity level of 5,200 units, the company's total quality control
cost equal $186,000. This amount includes equipment lease cost of $50,000 (all fixed) and manual inspection cost of $62,400 (all
variable). The remaining $73,600 of the total quality control cost consists of electronic testing (mixed). At an activity level of 7,200
units, electronic testing cost totals $89,600.
Assume that the relevant range includes all of the activity levels mentioned in this problem for the AX27912 company.
If 6,000 units are projected for the next period, how much would the total expected quality control cost be?
Multiple Choice
$226,000
$202,000
$130,000
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