Question

Location choice i has monthly fixed costs of $100,000 and per-unit variable costs of $10. what would its total cost be at a monthly volume of 250 units?

a.$105,200
b.$102,500
c.$100,250
d.$100,520
e.$105,500

Answer 1

The total cost at a monthly volume of 250 units for location choice i would be $102,500.

Step-by-step explanation:

The total cost can be calculated by adding the fixed costs to the variable costs. In this case, the fixed costs are $100,000 and the per-unit variable costs are $10. To find the total cost at a monthly volume of 250 units, we multiply the per-unit variable cost by the number of units and add it to the fixed costs:

Total Cost = Fixed Costs + (Variable Costs per Unit * Number of Units)

Total Cost = $100,000 + ($10 * 250) = $100,000 + $2,500 = $102,500