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

Costs and cost behaviour — practice question

A business incurred the following telephone expenses. Month 1: customer enquiries = 250 000, total cost = $425 000. Month 2: customer enquiries = 350 000, total cost = $575 000. Telephone costs are a semi-variable cost. What would the total telephone costs be for 305 000 enquiries?

  • A$501 071
  • B$507 500
  • C$508 333
  • D$518 500

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