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.)

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Quizplus · Accepted Answer

Since property taxes are fixed costs, they do not change with the sales volume. Therefore, the total property taxes would remain the same at $733,400 regardless of the sales volume, as long as it is within the relevant range.

At a Sales Volume of 38,000 Units, Tirri Corporation's Property