Answer:
For 260,000 units Variable Costs are = $ 154,000/120,000 * 260,000= $1.2833* 260,000= $ 333,667
Explanation:
Locke & Company
Total costs $ 329, 000
Less Fixed Costs $ 175, 000
Variable Costs $ 154,000 for 120,000 units
For 1 unit Variable Costs are = $ 154,000/120,000= $1.2833
For 260,000 units Variable Costs are = $ 154,000/120,000 * 260,000= $1.2833* 260,000= $ 333,667
The total Costs for 260,000 units would be determined by adding Variable Costs and Fixed Costs.
We Suppose the fixed costs are same then = 333,667 + 175,000= $ 508,667
Answer:
$332,800
Explanation:
Total cost is the sum of the fixed and variable costs.
Like the total sales, the total variable cost is also affected by the level of activities or units produced/sold.
Total variable cost = variable cost per unit * number of units
Hence, given that
Total costs at 120,000 units is $329,000 and total fixed cost is $175,000
Total variable costs = $329,000 - $175,000
= $154,000
Unit variable cost = $154,000/120,000
= $1.28
At 260,000 units,
Total variable cost
= $1.28 * 260,000
= $332,800
