Respuesta :
Answer:
Option (B) is correct.
Explanation:
Given that,
Total costs for ABC Distributing = $250,000
Activity level = 10,000 units
Variable costs are $5 per unit
Therefore, the fixed cost is calculated as follows:
Total cost = Variable cost + Fixed cost
$250,000 = (10,000 × $5 per unit) + Fixed cost
Fixed cost = $250,000 - $50,000
= $200,000
Answer:
$200,000
Explanation:
The computation is shown below:
Total cost = Fixed cost + variable cost
where,
Total cost = $250,000
And, the variable cost is
= Activity level × variable cost per unit
= 10,000 units × $5
= $50,000
So, the fixed cost would be
$250,000 = Fixed cost + $50,000
The fixed cost is
= $250,000 - $50,000
= $200,000
The total cost is a combination of the variable cost and the fixed cost
