Homework Answers
Total FIXED maintenance and repair cost will remain unchanged irrespective of quantity
Therefore fixed maintenance and repair cost for 5400 units in a month = $113360
Total variable maintenance cost = Variable maintenance cost / unit x Number of units
Since total variable maintenance and repair cost is $374,400 for 5200 units
Total variable and maintenance cost for 5400 units = ( $374.400/5200) x 5400 = $388,800
Thus, total maintenance and repair cost for 5400 units
= Fixed cost + Variable cost
= $113360 + $388,800
= $502160
|
ANSWER : $502160 |
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