Question
At a production volume of 10,000 units, Grist Company incurs a total cost of $30,000 ($10,000 in fixed cost, and $20,000 in variable cost). If
At a production volume of 10,000 units, Grist Company incurs a total cost of $30,000 ($10,000 in fixed cost, and $20,000 in variable cost). If the production volume is 12,000 units, the total cost will be:
A. | $34,000 | |
B. | $30,000 | |
C. | $36,000 | |
D. | $24,000 |
Carla Company incurred four costs. For each of them, the costs in total at different production levels are shown below.
| Production level | ||
100 units | 200 units | 300 units | |
Cost A | $20,000 | $40,000 | $60,000 |
Cost B | $30,000 | $40,000 | $50,000 |
Cost C | $30,000 | $30,000 | $30,000 |
Cost D | $30,000 | $30,000 | $50,000 |
Most likely, which of the above costs is a mixed cost?
A. | Cost A | |
B. | Cost B | |
C. | Cost C | |
D. | Cost D |
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