Mathematics · Cost Accounting
An organization has the following total costs at three activity levels: • Activity level: 8,000 units -> Total cost: $204,000 • Activity level: 12,000 units -> Total cost: $250,000 • Activity level: 15,000 units -> Total cost: $274,000 The variable cost per unit is constant within this range, but there is a step-up of 10% in total fixed costs when the activity level exceeds 11,000 units. What is the total cost at an activity level of 10,000 units?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$224,000
- 2$230,000
- 3$210,000
- 4$220,000✓
Correct answer
$220,000
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