A company has recorded the following costs over the last three years:

Year

Volume of production in units

Total Cost

Price Level Index

1

160,000

2,770,000

100

2

140,000

2,551,500

105

3

110,000

2,092, 800

109

What are the expected costs in year 4 when the output is planned to be 130,000 units and the price level index is expected to be 113?

2 marks