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soldier1979 [14.2K]
2 years ago
5

At a production level of 5,150 units, a project has total cash costs of $130,789. The variable cost per unit is $11.07, and the

depreciation is $8,600. What is the amount of the total fixed costs?a. $56,204.09 b. $65,178.50 c. $78,992.11 d. $73,778.50e. $68,626.67
Business
1 answer:
Sphinxa [80]2 years ago
3 0

Answer:

d. $73,778.50

Explanation:

Variable Cost = $11.07 per unit x 5,150 units = $57,010.50

Total Cost = $130,789

Fixed Cost = Total Cost - Variable Cost

Fixed Cost = $130,789 - $57,010.50

Fixed Cost = $73,778.50

Since Depreciation is the Fixed Cost and we have been given the Total Cost of the Project, so the Depreciation is already included in the Fixed Cost.

Hence Total Fixed Cost is equal to $73,778.50.

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Explanation:

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Brown Corporation earns $600,000 and pays cash dividends of $200,000 during 2012. Dexter Corporation owns 3,000 of the 10,000 ou
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Timothy wants to cut costs in his company to increase the profitability of production. Which tactic should Timothy utilize to cu
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Bay City Mining, Inc. has a price of $20 a share, outstanding shares of 2.5 million, retained earnings of $1 million dollars, an
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a. 50, which is high by historical standards.

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