The costs of the factory maintenance department for C Co appear to have a variable element dependent upon the number of units produced. The fixed element of the costs steps up when 20,000 or more units are produced. At an activity level of 22,000 units, the fixed element of the cost is $25,000. The variable cost per unit is constant.

Volume of production

Units 18,000 22,000

$ 200,000. $ 245,000

What would be the total cost for 19,000 units and the total cost for 21,000 units?

Answer rating: 100% (QA)

We know that the total cost of 18000 units is 200000 and for 22000 units is 245000 However the fixed ... View the full answer