E6-22A (book/static) Rollins Mailbox produces decorative mailboxes. The company's average cost per unit is $ 23.43 when it produces 1 comma 400 mailboxes. Requirements 1. What is the total cost of producing 1 comma 400 mailboxes?

Total cost of 1400 mailboxes is $32,802

Explanation:

Total cost equation applicable in this scenario is given below:

Total cost=average cost per unit*number of mailboxes

average per unit is $23.43

number of mailboxes is 1,400

Total cost=$23.43*1400

Total cost=$32,802

Total cost function sometimes is given as fixed cost plus variable cost per unit * number of output

However, in this case, it is believed that the only relevant cost is variable cost of $23.43 per unit of mailbox, hence the total cost was computed bearing in mind that only the variable cost is relevant.