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XYZ Corp. has identified the following costs at different activity levels for electricity for their manufacturing plant: Units Produced Electricity Cost 10,000 $1,700,000 15,000 $2,500,000
XYZ Corp. has identified the following costs at different activity levels for electricity for their manufacturing plant: Units Produced Electricity Cost 10,000 $1,700,000 15,000 $2,500,000 18,000 $2,880,000 20,000 $3,170,000 25,000 $3,950,000 Management is uncertain on how to predict costs at different activity levels and thus has asked for some assistance. Management is expecting that 17,000 units will be produced next month, what is the estimated the total electricity cost. A. $2,750,000 B. $200,000 C. $2,550,000 D. $2,500,000
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