Answer:
Total fixed cost= 15,000
Total variable cost= $96,300
Explanation:
Giving the following information:
Based on a predicted level of production and sales of 12,000 units.
The variable costs= $77,000
The fixed costs= $15,000
<u>The fixed costs, in the relevant range, remain the same. We need to calculate the unitary variable cost:</u>
Unitary variable cost= 77,000/12,000= $6.42 per unit
Now, we can calculate the total cost of 15,000 units.
Total fixed cost= 15,000
Total variable cost= 6.42*15,000= $96,300
Total cost= $111,300
