Asked by Emily Treadaway on Jun 26, 2024
Verified
Given the cost formula Y = $23,000 + $8X, total cost at an activity level of 7,000 units would be:
A) $33,000
B) $79,000
C) $23,000
D) $56,000
Cost Formula
A method or equation used to calculate the total cost of production, including fixed and variable expenses.
Activity Level
Refers to the volume of production or the rate of operations within a specific period.
- Acquire knowledge on fixed, variable, and aggregate cost concepts within the pertinent range.
Verified Answer
DR
Dhruv RekhiJun 30, 2024
Final Answer :
B
Explanation :
Y = $23,000 + ($8 per unit × 7,000 units)
Y = $23,000 + $56,000
Y = $79,000
Y = $23,000 + $56,000
Y = $79,000
Learning Objectives
- Acquire knowledge on fixed, variable, and aggregate cost concepts within the pertinent range.