Triax Corp. produced 50,000 gizmos at a total cost of $1,600,000 (including $400,000 of fixed costs) in the fiscal year just completed. If fixed costs and unit variable costs do not change next year, how much will it cost to produce 60,000 gizmos?

Fixed Costs

Fixed costs are business expenses that remain unchanged regardless of the level of production or sales activity, such as rent, salaries, and insurance.

Unit Variable Costs

The costs that vary directly with the production volume, per unit of output.

Total Cost

The aggregate monetary value of all materials, labor, overhead, and expenses spent on a project or production.