Anderson Ltd. Manufactured 10,000 units of a product last year and identified the following manufacturing and overhead costs (V denotes variable cost and F denotes fixed cost). If variable cost and fixed costs remain unchanged, calculate the total cost to produce 12,000 units.

Question

Anderson Ltd. Manufactured 10,000 units of a product last year and identified the following manufacturing and overhead costs (V denotes variable cost and F denotes fixed cost).  If variable cost and fixed costs remain unchanged, calculate the total cost to produce 12,000 units.

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The Answer of Anderson Ltd. Manufactured 10,000 units of a product last year and identified the following manufacturing and overhead costs (V denotes variable cost and F denotes fixed cost).  If variable cost and fixed costs remain unchanged, calculate the total cost to produce 12,000 units.