Compute total cost if fixed cost is 15500 and variable cost

Compute total cost if fixed cost is: $15,500 and variable cost is 12.50 per unit. And out-put is 13,000 units.

Solution

total cost=fixed cost+variable cost

=$15500+($12.5*13000)

which is equal to

=$178000

NOTE:total fixed cost and variable cost/unit do not change with change in units.