Ask Question
13 December, 16:41

Maryland Incorporated produces toys. Total manufacturing costs are $360,000 when 50,000 toys are produced. Of this amount, total variable costs are $140,000. What are the total production costs when 85,000 toys are produced? (Assume the same relevant range for both production levels.)

+1
Answers (1)
  1. 13 December, 18:45
    0
    Answer: $458,000

    Explanation:The computation of the total production cost in case of 85,000 toys are produced

    The fixed cost is

    = Total manufacturing cost - total variable cost

    = $360,000 - $140,000

    = $220,000

    And, the variable cost per unit is

    = $140,000 : 50,000 toys

    = $2.8

    So for 85,000 toys, the total production cost is

    = Fixed cost + Variable cost * variable cost per unit

    = $220,000 + 85,000 toys * $2.8

    = $220,000 + $238,000

    = $458,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Maryland Incorporated produces toys. Total manufacturing costs are $360,000 when 50,000 toys are produced. Of this amount, total variable ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers