Ask Question
BusinessBusiness
15 May, 00:36

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

+5
Answers (1)
  1. 15 May, 00:48
    0
    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.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “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 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
What are the two main economic problems that keynesian economics seeks to address?
Answers (1)
What is the study of value, its transmission, and its effects, on human society and the organization of business? A.) IT B.) Operations C.) Marketing D.) Economics
Answers (1)
g A. Cutting the firm's dividend to increase investment will raise the stock price if, and only if, the return of new investments is higher than the cost of capital. B.
Answers (1)
Agricultural output is a large part of Econland's GDP. Particularly bad weather one year leads to an output that is smaller than normal, causing a shock to Econland's economy.
Answers (1)
Which of the following statements is FALSE about outsourcing? It saves both direct and indirect management time. It reduces implementation risk. It gains economies of scale. It guarantees a certain a level of quality.
Answers (1)
New Questions in Business
In the post-Reconstruction era most African-Americans in the South had little opportunity for economic advancement, and worked mainly as
Answers (1)
Abby and jason are building a new house. they obtained a construction loan of $100,000, which will be rolled over into a conventional 30-year mortgage when the house is completed in 16 months.
Answers (1)
Which of the following items is a direct cost? a) Customer service costs in a multi-product firm when Product A is the cost object b) Printing costs incurred for payroll check processing when payroll check processing is the cost object c) The salary
Answers (1)
Advantages of borrowed capital
Answers (1)
Developing a new product, hiring a new employee, and fulfilling an order are examples of business processes. a. trueb. false
Answers (1)
Home » Business » 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.
Sign Up Forgot Password?