Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 550 units?
A)$105,200
B)$102,500
C)$100,250
D)$100,520
E)$105,500

Question

Quizplus · Accepted Answer

The total cost is calculated by adding the fixed costs to the product of the variable cost per unit and the number of units. Total cost = $100,000 + ($10 * 550) = $100,000 + $5,500 = $105,500.

Location Choice I Has Monthly Fixed Costs of $100,000 and Per-Unit