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At an activity level of 6,900 units in a month, Zeus Corporation's total variable maintenance and repair cost is $408,756, and its total fixed maintenance and repair cost is $230,253. What would be the total maintenance and repair cost of both fixed and variable costs combined at an activity level of 7,100 units in a month?Assume that this level of activity is within the relevant range. a. $ 648,270 b. $ 639,009 c. $ 650,857 d. $ 657,531

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Answer:

The correct answer is C.

Explanation:

Giving the following information:

At an activity level of 6,900 units in a month, Zeus Corporation's total variable maintenance and repair cost is $408,756, and its total fixed maintenance and repair cost is $230,253.

First, we need to calculate the unitary variable cost:

Unitary variable cost= 408,756/6,900= $59.24

Number of untis= 7,100

Total cost= total variable cost + total fixed cost

TC=  59.24*7,100 + 230,253= $650,857

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