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Vi ..S At a sales volume of 38,000 units, Tirri Corporation's property taxes (a cost that is fixed with respect to sales volume) total $733,400. To the nearest whole dollar, what should be the total property taxes at a sales volume of 37,200 units? (Assume that this sales volume is within the relevant range.) $733,400 $749,172 $717,960 $725,680

Vi ..S At a sales volume of 38,000 units, Tirri Corporation's property taxes (a cost that is fixed with respect to sales volume) total $733,400. To the nearest whole dollar, what should be the total property taxes at a sales volume of 37,200 units? (Assume that this sales volume is within the relevant range.) $733,400 $749,172 $717,960 $725,680

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Vi ..S QUESTION 3 At a sales volume of 38,000 units, Tirri Corporation's property taxes (a cost that is fixed with respect to sales volume) total $733,400. To the nearest whole dollar, what should be the total property taxes at a sales volume of 37,200 units? (Assume that this sales volume is within the relevant range.) $733,400 $749,172 $717,960 $725,680
Transcribed Image Text:Vi ..S QUESTION 3 At a sales volume of 38,000 units, Tirri Corporation's property taxes (a cost that is fixed with respect to sales volume) total $733,400. To the nearest whole dollar, what should be the total property taxes at a sales volume of 37,200 units? (Assume that this sales volume is within the relevant range.) $733,400 $749,172 $717,960 $725,680
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Variable Cost :— It is the cost that changes with change in units. It is constant in per unit. 

Example — Direct material cost, direct labour cost, etc

 

Fixed Cost :— It is the cost that does not changes with change in units. It is constant for all flexible units.

 

Example — Factory Rent, Factory Electricity, Depreciation, managers salary, taxes on building, etc. 

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