Maxim Company incurred $70,000 ($30,000 of total fixed cost and $40,000 of total variable cost) when 1,000 units of a given product were produced. If 2,000 units are made, the company's total cost will be:
A. $100,000
B. $110,000
C. $130,000
D. $140,000
Answer: B
40,000 / 1,000 = $40 per unit
2,000 * 40 = 80,000
+ 30,000
= 110,000
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.