At a sales volume of 37,000 units, Maks Corporation's property taxes (a cost that is fixed with respect to sales volume) total $802,900. To the nearest whole dollar, what should be the total property taxes at a sales volume of 39,700 units? (Assume that this sales volume is within the relevant range.)
A)$802,900
B)$748,295
C)$832,195
D)$861,490

Question

Quizplus · Accepted Answer

Property taxes are a fixed cost, meaning they do not change with the level of sales volume as long as it is within the relevant range. Therefore, the total property taxes at a sales volume of 39,700 units would remain $802,900.

At a Sales Volume of 37,000 Units, Maks Corporation's Property