Total costs for Locke​ & Company at 170,000 units are $ 329,000​, while total fixed costs are $ 175,000. The total variable costs at a level of 270,000 units would be​ (Round intermediate calculations to the nearest cent and the final answer to the nearest​ dollar.)

Respuesta :

Answer:

$245,700

Explanation:

Variable cost is cost thay changes with production e.g. wages

Fixed cost is cost that does not vary with production e.g. rent

Total cost = Total fixed cost + variable cost

Variable cost = $ 329,000​ - $ 175,000 = $154,000

Total variable cost for 170,000 units. Average variable cost = $154,000 / 170,000 = $0.91

Total variable cost for 270,000 units = 270,000 x $0.91 = $245,700

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