$1.$ A company has the following total costs A company has the following total costs

There is a $20\%$ increase in total fixed costs when the activity level exceeds $5000$ units.

Increase treshold$=$

$5,000$

Increase amount$=$

$20\%$

a$.$ Establish total cost function for this company

b$.$ Estimate total cost If the company produces $7000$ units?

Activity level $($units$)3,0004,0006,0008,000$

Total cost $($$$)$ $$11,000$ $$13,000$ $$18,000$ $$22,000$

There is a $20\%$ increase in total fixed costs when the activity level exceeds $5000$ units.

Increase treshold$=5,000$

Increase amount$=20\%$

a$.$ Establish total cost function for this company

b$.$ Estimate total cost If the company produces $7000$ units?