At a production level of 4,500 units, a project has total costs of $108,000. The variable cost per unit is $11.20. Assume the firm can increase production by 1,000 units without increasing its fixed costs. What will the total costs be if 4,800 units are produced?
A)$102,780
B)$104,640
C)$106,400
D)$108,000
E)$111,360

Question

Quizplus · Accepted Answer

Total cost = [$108,000 - ($11.20 F1F1F1S1F1F1F10 4,500)] + (4,800 F1F1F1S1F1F1F10 $11.20) = $111,360

At a Production Level of 4,500 Units, a Project Has