Question

Fill in the blanks to complete the sentence. Fixed costs equal $25,000; variable cost per unit is $2.50 and units produced are 10,000. The total budgeted costs is

Answer 1

Answer:

Total cost= $50,000

Explanation:

Giving the following information:

Fixed costs equal $25,000

Variable cost per unit is $2.50

Units produced=10,000

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

Total cost= fixed costs + total variable cost

Total cost= 25,000 + 2.5*10,000

Total cost= $50,000