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vichka [17]
3 years ago
10

how all calculations: Palmer Inc. currently produces 110,000 units at a cost of $440,000. Next year Palmer Inc. expects to produ

ce 115,000 units. Palmer’s relevant range is 100,000 to 120,000 units. If the cost is variable and 115,000 units are produced, the total cost ­­­­­_____. Group of answer choices will decrease will increase to $460,000 will stay the same will be indeterminate
Business
1 answer:
Mekhanik [1.2K]3 years ago
6 0

Answer:

Will increase to $460,000

Explanation:

Palmer Inc. currently produces 110,000 units at the rate of $440,000

Next year they are expected to produce 115,000 units

Since the cost is variable, the total cost can be calculated as

(440,000/110,000) × 115,000

= 4×115,000

= $460,000

Hence the total cost is $460,000

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