The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product:
-The best estimate of the total cost to manufacture 1,200 units is closest to:
A)$132,160
B)$121,920
C)$129,600
D)$137,280

Question

The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product: 
-The best estimate of the total cost to manufacture 1,200 units is closest to:
A)$132,160 
B)$121,920 
C)$129,600 
D)$137,280

Quizplus · Accepted Answer

From earlier parts,the total fixed cost is $25,600 and the variable cost per unit is $88.80
Total cost = Total fixed cost + Total variable cost
= $25,600 + ($88.80 per unit F1F1F1S1F1F1F10 1,200 units)
= $25,600 + $106,560
= $132,160

The Following Production and Average Cost Data for Two Levels