Answer:
Total cost= $123,525
Explanation:
Giving the following information:
Fixed costs: supervisor's salary $1,200; factory rent $2,900
Mixed costs: utilities $1,700+ $5.75 per unit
Variable costs per unit manufacturing labor wages $21.00; supplies used in production $9.00; packaging cost $2.75, warranty cost $4
<u>We need to determine the total cost of 2,770 units:</u>
Total variable cost= 5.75*2,770 + 21*2,770 + 9*2,770 + 2.75*2,770 + 4*2,770
Total variable cost= $117,725
Total fixed costs= 1,200 + 2,900 + 1,700= $5,800
Total cost= 117,725 + 5,800= $123,525
