Question
A-1 Corporation extracts ore for eight different companies in Colorado. The firm anticipates variable costs of $65 per ton along with annual fixed overhead of
A-1 Corporation extracts ore for eight different companies in Colorado. The firm anticipates variable costs of $65 per ton along with annual fixed overhead of $840,000, which is incurred evenly throughout the year. These costs exclude the following semivariable costs, which are expected to total the amounts shown for the high and low points of ore extraction activity: March (850 tons): $39,900 August (1,300 tons): $46,200 A-1 uses the high-low method to analyze cost behavior.
Calculate the total cost for an upcoming month when 875 tons will be extracted.
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