Question
Luisa Rentals offers machine rental services for concrete cutting. Consider the following costs of the company over the relevant range of 4,000 to 10,000 hours
Luisa Rentals offers machine rental services for concrete cutting. Consider the following costs of the company over the relevant range of 4,000 to 10,000 hours of operating time for its concrete cutting equipment.
Hours of Operating Time 4,000 5,000 8,000 10,000
Total Costs:
Variable Costs $ 20,000 ? ? ?
Fixed Costs 82,000 ? ? ?
Total Costs $102,000 ? ? ?
Cost per hour:
Variable cost ? ? ? ?
Fixed cost ? ? ? ?
Total cost per hour ? ? ? ?
What are the estimated total fixed costs at a volume of 10,000 hours?
A. $100,000
B. $94,000
C. $95,000
D. $82,000
E. None of the Above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started