Answer:
The correct answer is option (D).
Explanation:
According to the scenario, the given data are as follows:
Total Cost = $58,500
Total units = 9,000
Total fixed cost = $36,000
So, we can calculate the total cost for 12,000 balls by using following formula:
Total Cost for 12,000 balls = (12,000 × Variable cost per unit) + Fixed cost
Where, variable cost per unit = (Total cost - Fixed cost) ÷ Total units
= ($58,500 - $36,000) ÷ 9,000 = $2.5
By putting the value, we get
Total Cost for 12,000 balls = (12,000 × $2.5) + $36,000
= $66,000.
