Company C is interested in using rates at capacity to better understand its costs of unused capacity. It expects to pay 146,000 in wages this year. In recent years, wages have ranged from a low of 82,000 to a high of 189,000 while the average was 120,000. Overhead costs have been largely fixed at 948,000 in recent years. What is the expected cost of unused capacity this year?

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maximum capacity to be used is 189000 cost of u... View the full answer