Maryland Incorporated produces toys.Total manufacturing costs are $350,000 when 50,000 toys are produced.Of this amount,total variable costs are $100,000.What are the total production costs when 75,000 toys are produced? (Assume the same relevant range for both production levels. )

Question

Quizplus · Accepted Answer

B)
v = $100,000/ 50,000
v = $2
then
f = $350,000 - 100,000
f = 250,000
finally
y = vx + f
y = $3.00 (75,000)+ $250,000
y = $400,000

Maryland Incorporated Produces Toys