A review of Parson Corporation's accounting records found that at a volume of 144,000 units, the variable and fixed cost per unit amounted to $6 and $2, respectively. On the basis of this information, what amount of total cost would Parson anticipate at a volume of 137,000 units?

Question

Business

Matthew Fields

14 March, 19:59

A review of Parson Corporation's accounting records found that at a volume of 144,000 units, the variable and fixed cost per unit amounted to $6 and $2, respectively. On the basis of this information, what amount of total cost would Parson anticipate at a volume of 137,000 units?

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Answers (1)

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Giovanni Cummings · Answer 1

1,110,000

Explanation:

Parson Corporation's

Volume of unit * Fixed cost per unit

144,000 unit * 2 cost per unit = 288,000

Volume of unit * Variable cost per unit

137,000 unit * 6 cost per unit = 822,000

Therefore

822,000+288,000 = 1,110,000

Parson would anticipate 1,110,000 of total cost at a volume of 137,000 units.