Question
Davidson Wine & More has a Total Administrative Costs of $100,000 when she makes 20,000 picnic wine glass holders. $20,000 of this represents a fixed
Davidson Wine & More has a Total Administrative Costs of $100,000 when she makes 20,000 picnic wine glass holders. $20,000 of this represents a fixed cost for accounting salaries. The relevant range extends to 25,000 picnic wine glass holders. Many of her customers began a clean living lifestyle, reducing wine intake, but more began drinking wine because of COVID. Her new production level for picnic wine glass holders is 23,000. What is her new Total Administrative Costs for this increased production volume? A $115,000 B $92,000 C $112,000 D $123,000
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