Answered

At Westonci.ca, we provide clear, reliable answers to all your questions. Join our vibrant community and get the solutions you need. Our platform connects you with professionals ready to provide precise answers to all your questions in various areas of expertise. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

During 20x5, Medallion Industries anticipates production of 20,000 units, budgeted variable costs of $85,000, and budgeted fixed costs of $45,000. If 15,000 units are actually produced, what is the expected total cost

Sagot :

facundobuzzetti

Answer:

Total cost= $108,750

Explanation:

Giving the following information:

For 20,000 units:

Total budgeted variable cost= $85,000

Total budgeted fixed costs= $45,000

First, we need to calculate the unitary variable cost:

Unitary variable cost= 85,000/20,000= $4.25

The fixed costs remain constant at a total level.

Now, we can determine the total cost for 15,000 units:

Total cost= 4.25*15,000 + 45,000

Total cost= $108,750

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.