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Listed below are the total costs incurred for Goalies Ball, Inc., a Soccer Ball manufacturer when 20,000 soccer balls are produced and sold during the

Listed below are the total costs incurred for Goalie’s Ball, Inc., a Soccer Ball manufacturer when 20,000 soccer balls are produced and sold during the month. The soccer balls sell for $35 each.

Variable Costs:

Shipping costs

$4,000

Logo imprinting on soccer balls

$1,000

Leather used in soccer balls

$25,000

Wages of assembly line workers

$70,000

Sales commissions

$6,000

Rubber used in soccer balls

$15,000

Fixed Costs:

Administrative salaries – main office

$60,000

Advertising

$11,200

Depreciation - Factory equipment

$7,800

Factory Manager salary

$18,000

Factory rent

$15,400

Main office rent

$8,400

Repairs and Maintenance – Factory

$6,900

Repairs and Maintenance – Main office

$3,700

Assume production were to increase to 22,000 soccer balls, which is within the firm’s relevant range of production. The total costs that would be incurred when 22,000 soccer balls are produced is:

Group of answer choices

$252,400

$264,500

$277,640

$265,540

$260,880

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