Answer:
d. $121,600
Explanation:
The total sales revenue = 26100 * 14 = $365400
Out of this revenue figure, 61100 is the profit figure which means the total costs are 365400 - 61100 = $304,300
The variable costs amount to = 7 * 26100 = $182700
As we know that the total cost is made up of both fixed and variable costs, the fixed costs will then be,
Fixed cost = Total cost - Variable cost
Fixed Cost = 304300 - 182700 = $121,600
Answer: $121,600
Explanation:
Given the following;
Number of units = 26,100
Cost per unit = $14
Pretax income = $61,100
Variable cost = $7
Pretax income represents an organization's profif after deducting all operating expenses before except income tax.
Total revenue from sales = $14 × 26,100 = $365,400
If Total revenue from sales = $365,400
and profit accrued after deducting operating expenses = $61,100.
cost of production can be found by;
Total revenue from sales - Pretax income
$365,400 - #61,100 = $304,300
Total cost = $304,300
Using the formula :
Total cost = variable cost + fixed cost
Variable cost = $7 ×26,100 = $182,700
Fixed cost = $304,300 - $182,700 = $121,600
