Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

A company gives the following details about its carriage costs. If 2000 units are transported, the total cost is $6000. If 5000 units are transported, the total cost is $13500. For quantities above 5000 units, the cost will raise the fixed charge by another $2000. What is the cost of transporting 6000 units?

  • A$15500
  • B$16200
  • C$18000
  • D$20000

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