27.4k views
2 votes
Kaelker corporation reports that at an activity level of 7,000 units, its total variable cost is $590,730 and its total fixed cost is $372,750. what would be the total cost, both fixed and variable, at an activity level of 7,100 units? assume that this level of activity is within the relevant range. $977,244 $970,362 $963,480 $971,919

User Boomerang
by
8.1k points

1 Answer

5 votes
total variable cost at 7100=7100(590730/7000)=599169fixed cost=372750total cost=599169+372750=971919

User Msaspence
by
8.6k points