At a sales volume of 38000 units Tirri Corporations property

At a sales volume of 38,000 units, Tirri Corporation\'s property taxes (a cost that is fixed with respect to sales volume) total $733,400. To the nearest whole dollar, what should be the total property taxes at a sales volume of 37,200 units? (Assume that this sales volume is within the relevant range.)

Multiple Choice

$749,172

$725,680

$717,960

733,400

Solution

Total Property Taxes  at a sales volume of 37,200 units = $ 733,400 / 38,000 Units * 37,200 Units

= $ 717,960

Hence the correct answer is $ 717,960