Sophie Corporation recently produced and sold 100,000 units. Fixed costs at this level of activity amounted to $50,000; variable costs were $100,000. How much cost would the company anticipate if during the next period it produced and sold 102,000 units?

Question

Business

Shirley Clements

11 April, 04:38

Sophie Corporation recently produced and sold 100,000 units. Fixed costs at this level of activity amounted to $50,000; variable costs were $100,000. How much cost would the company anticipate if during the next period it produced and sold 102,000 units?

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Answers (1)

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Joel Robertson · Answer 1

Total cost = $152,000

Explanation:

Giving the following information:

Sophie Corporation recently produced and sold 100,000 units. Fixed costs at this level of activity amounted to $50,000; variable costs were $100,000.

Production = 102,000 units

We will assume that the fixed costs remain in the relevant range.

Fixed costs = 50,000

Variable costs = 102,000*1 = 102,000

Total cost = $152,000