Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.
-The best estimate of the total cost to manufacture 6,300 units is closest to:
A)$1,425,690
B)$1,355,760
C)$1,495,620
D)$1,449,000

Question

Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.  
-The best estimate of the total cost to manufacture 6,300 units is closest to:
A)$1,425,690 
B)$1,355,760 
C)$1,495,620 
D)$1,449,000

Quizplus · Accepted Answer

See earlier parts for the variable cost per unit and the total fixed cost.
Total cost = Total fixed cost + Total variable cost
= $932,400 + ($82.00 per units F1F1F1S1F1F1F10 6,300 units)
= $932,400 + $516,600
= $1,449,000

Babuca Corporation Has Provided the Following Production and Total Cost