Emilio Corporation reports that at an activity level of 3,400 units, its total variable cost is $59,058 and its total fixed cost is $101,150.
-What would be the total variable cost at an activity level of 3,500 units? Assume that this level of activity is within the relevant range.
A)$59,058
B)$160,208
C)$60,795
D)$104,125

Question

Quizplus · Accepted Answer

Variable cost per unit = Total variable cost F1F1F1S1F1F1F10 Total activity
= $59,058 F1F1F1S1F1F1F10 3,400 units
= $17.37 per unit
Total variable cost = Variable cost per unit F1F1F1S1F1F1F10 Total activity
= $17.37 per unit F1F1F1S1F1F1F10 3,500 unit
= $60,795

Emilio Corporation Reports That at an Activity Level of 3,400