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

Costs and cost behaviour — practice question

A company recorded the following telephone expenses. Month 1: 250000 customer enquiries, total cost $425000 Month 2: 350000 customer enquiries, total cost $575000 Telephone costs are a semi-variable cost. What would be the total telephone costs for 305000 enquiries?

  • A$501071
  • B$507500
  • C$508333
  • D$518500

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