Total costs for Locke & Company at 120 comma 000 units are $ 329 comma 000 , while total fixed costs are $ 175 comma 000. The total variable costs at a level of 260 comma 000 units would be (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.)

Question

Business

Hugo Burns

14 March, 15:12

Total costs for Locke & Company at 120 comma 000 units are $ 329 comma 000 , while total fixed costs are $ 175 comma 000. The total variable costs at a level of 260 comma 000 units would be (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.)

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Answers (1)

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Sara Suarez · Answer 1

For 260,000 units Variable Costs are = $ 154,000/120,000 * 260,000 = $1.2833 * 260,000 = $ 333,667

Explanation:

Locke & Company

Total costs $ 329, 000

Less Fixed Costs $ 175, 000

Variable Costs $ 154,000 for 120,000 units

For 1 unit Variable Costs are = $ 154,000/120,000 = $1.2833

For 260,000 units Variable Costs are = $ 154,000/120,000 * 260,000 = $1.2833 * 260,000 = $ 333,667

The total Costs for 260,000 units would be determined by adding Variable Costs and Fixed Costs.

We Suppose the fixed costs are same then = 333,667 + 175,000 = $ 508,667