Answer:
Total fixed cost= 764,000
Total variable cost= $277,305
Total cost= $1,041,305
Explanation:
Giving the following information:
Total fixed costs for Randolph Manufacturing are $764,000. Total costs, including both fixed and variable, are $1,030,000 if 200,000 units are produced.
First, we need to calculate the unitary variable cost:
Total cost= fixed costs + total variable cost
1,030,000= 764,000 + total variable cost
total variable cost= 266,000
Unitary variable cost= 266,000/200,000= $1.33 per unit
Now, we can calculate the total cost for 208,500
Total cost= 764,000 + (1.33*208,500)= $1,041,305
