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Shipping costs at Colstrip Mining Company are a mixture of variable and fixed components. The company shipped 8,000 tons of coal for $400,000 in shipping
Shipping costs at Colstrip Mining Company are a mixture of variable and fixed components.
The company shipped 8,000 tons of coal for $400,000 in shipping costs in February and 10,000 tons for $499,000 in March.
Assuming that this activity is within the relevant range, expected shipping costs for 11,000 tons would be:
a. | $548,500 | |
b. | $544,500 | |
c. | $554,000 | |
d. | $548,900 | |
e. | $422,222 |
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