Left Hand, Inc has fixed costs of $400,000

Total costs, both fixed and variable, are $550,000 when 40,000 units are produced. Calculate the total costs if the volume increases to 64,000 units. (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)
A) $950,000
B) $150,000
C) $640,000
D) $550,000


C .C)
Total costs $550,000
Less: fixed costs (400,000 )
Variable costs (A ) $150,000
Number of units (B) 40,000
Variable cost per unit (A ) / (B) $3.75

Number of units after increase in production 64,000
Variable costs of production 240,000
Fixed costs 400,000
Total costs after increase in production $640,000

Business

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