Batterson Corporation leases its corporate headquarters building. This lease cost is fixed with respect to the company's sales volume. In a recent month in which the sales volume was 28,000 units, the lease cost was $697,200.
-To the nearest whole dollar,what should be the total lease cost at a sales volume of 29,200 units in a month? (Assume that this sales volume is within the relevant range.)
A) $712,140
B) $697,200
C) $727,080
D) $668,548

Question

Quizplus · Accepted Answer

$697,200; A fixed cost is constant in total within the relevant range.

Batterson Corporation Leases Its Corporate Headquarters Building