Question
A company has identified that total costs increase by 20% when activity level equals or exceeds...
A company has identified that total costs increase by 20% when activity level equals or exceeds 7,500 units. The variable cost per unit is constant over this range of activity.
The company has identified the following costs at three activity levels,
Units Total Costs
High 11,000 276,000
Middle 8,000 240,000
Low 5,000 180,000
- Find the Fixed Cost
- Construct the total cost function.
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