Cost Formula The following total cost data are for Phoenix Manufacturing Company, which has a normal capacity per period of 40,000 units of product that sell for $45 each. For the foreseeable future, sales volume should equal normal capacity of production Direct material Direct labor $480,000 300,000 Variable overhead 150,000 Fixed overhead (Note 1) 162,000 Selling expense (Note 2 210,000 Administrative expense (fixed) 66,000 $1,368,000 Notes: 1. Beyond normal capacity, fixed overhead cost increases $4,680 for each 2,000 units or fraction thereof until a maximum capacity of 50,000 units is reached. 2. Selling expenses are a 10% sales commission plus shipping costs of $0.75 per unit. a. Using the information available, prepare a formula to estimate Phoenix's total cost at various production volumes up to normal capacity. Total cost = $ 0 + $0 X # of units. b. Prove your answer in requirement (a) relative to the total cost figure for 40,000 units. $ Total cost = 0 = $ Fixed cost + Variable cost 0 + $ 0