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Clerical costs in the billing department of Baxter Company are a mixture of variable and fixed components. Records indicate that average unit processing costs are
Clerical costs in the billing department of Baxter Company are a mixture of variable and fixed components. Records indicate that average unit processing costs are $0.55 per account processed at an activity level of 30,000 accounts. When only 22,000 accounts are processed the total cost of processing is $12,500. Assuming that this activity is within the relevant range, at a budgeted level of 27,500 accounts: The answer is total processing costs are expected to total $15,250. Can you show me the steps I need to take to get to this solution?
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