Answer:
The total cost is $1,796,600
Explanation:
Fixed costs are costs that do not change with the change in the volume of good or service sols, but under certain circumstances, when the fixed cost is a direct cost, it can vary on a per unit basis.
Variable costs are costs that change with the change of the volume of goods or service.
Total number of units = 138,200
variable cost per unit = $8
Total variable cost = 8 × 138,200 = 1,105,600
Fixed cost per unit = $5
Total fixed cost = 5 × 138,200 = 691,000
Total cost = 1,105,600 + 691,000 = $1,796,600
