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

Costs and cost behaviour — practice question

The budgeted figures given below are provided: 7000 units carry a total cost of $15000; 9000 units carry a total cost of $19000. If output were to exceed 9000 units, fixed costs would rise by $500. What would be the total budgeted production cost for 10000 units?

  • A$20500
  • B$21000
  • C$21500
  • D$21750

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