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An organisation has the following total costs at two activity levels: Activity level (units) 8,000 13,000 13,000 5,000 Total costs () 22,000 31,000 32500 10,500

An organisation has the following total costs at two activity levels:
Activity level (units) 8,000 13,000 13,000 5,000
Total costs () 22,000 31,000 32500 10,500
2
Fixed costs are constant in this range of activity and variable cost per unit decreases by 1.5 per unit when activity exceeds 12,000 units
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