Question
Lucy Sportswear (LS) manufactures specialty t-shirts. It has the following cost structure for the fiscal year just ended: Product Costs $ Period Costs 550,000 Variable
Lucy Sportswear (LS) manufactures specialty t-shirts. It has the following cost structure for the fiscal year just ended: Product Costs $ Period Costs 550,000 Variable Costs 210,000 Fixed Costs $ {:[" Revenues for "],[" the fiscal year "],[" just ended "]:} 1,025,000 The amounts reflect operating at 70% of full capacity. In the upcoming fiscal year, Lucy anticipates an increase in demand and believes to meet it, must operate at 85% of full capacity. What will be Lucy's total operating costs if it operates at 85% of full capacity?
a) $738,214.29
b) $856,071.43
c) $750,000.00
d) $938,214.29
e) $810,750.00
f) None of the above
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