Question

You have information for the cost formula, Y = $9,000 + $2.50X, total cost for an...

You have information for the cost formula, Y = $9,000 + $2.50X, total cost for an activity level of 3,000 units would be:

Question 11 options:

A)

$9,750


B)

$12,000


C)

$16,500


D)

$7,500
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Answer #1

Question 11: : C. $16,500

Explanation:

As per cost formula Total cost = Total fixed cost + Total variable cost

Therefore,

Total fixed cost $          9,000
Total variable cost [2.5*3000] $          7,500
Total cost $        16,500
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