Question
The Bovalire company sells a single product. The unit selling price is 20 . At the beginning of 2020, the company experienced significant monthly fluctuations
The Bovalire company sells a single product. The unit selling price is 20 . At the beginning of 2020, the company experienced significant monthly fluctuations in activity. January was a low point with 3000 units for a total cost of 29,019 and March a high point with 7000 units for a total cost of 59,879 . The Management controller would like to use these observations to model the total cost and anticipate what a production of 5,066 units would cost the company. We will assume that the unit variable cost and the total fixed cost would remain constant when the activity vary between 3000 units and 7000 units.
What is the total fixed cost?
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