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Kaelker Corporation reports that at an activity level of 7,000 units, its total variable cost is $590,730 and its total fixed cost is $372,750. What would be the total cost, both fixed and variable, at an activity level of 7,100 units

Respuesta :

Answer:

$971,919

Explanation:

Total cost is the sum of fixed cost and variable cost.

Fixed cost doesn't vary with production.

Variable costs varies with production.

Total cost = Fixed cost + variable cost

Per unit variable cost =  $590,730 / 7000 = $84.39

Total variable cost = $84.39 x 7100 = $599,169 + $372,750 = $971,919

I hope my answer helps you

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