Question

Smith Corporation has variable costs equal to $5.10 per unit, fixed costs of $11,000, and total output equal to 240 units. What is the total cost

Answer 1

Total cost= $12,224

Step-by-step explanation:

Giving the following information:

Smith Corporation has variable costs equal to $5.10 per unit, fixed costs of $11,000, and total output equal to 240 units.

To calculate the total cost, we need to use the following formula:

Total cost= fixed costs + unitary variable cost*number of units

Total cost= 11,000 + 5.1*240

Total cost= $12,224