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inysia [295]
3 years ago
15

Slappy Corporation leases its corporate headquarters building. This lease cost is fixed with respect to the company's sales volu

me. In a recent month in which the sales volume was 20,000 units, the lease cost was $482,000. To the nearest whole dollar, what should be the total lease cost at a sales volume of 16,900 units in a month? (Assume that this sales volume is within the relevant range.)
Business
1 answer:
monitta3 years ago
5 0

Answer:

$482,000

Explanation:

The computation of the total lease cost is shown below:

For 16,900 units, the lease cost would be

= Lease cost × sales volume ÷ recent sales volume

= $482,000 × 16,900 units ÷ 20,000 units

= $407,290

This would be the answer but the least cost if fixed whether sales volume is increased or not . So, the total lease cost would remain unchanged i.e $482,000

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