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4. Bell Corporation reports that at an activity level of 6,00 units, its total variable cost...

4. Bell Corporation reports that at an activity level of 6,00 units, its total variable cost is $280,000 and its total fixed cost is $90,240. What would be the total variable cost at an activity level of 6,200 units? Assume that this level of activity is within the relevant range.

A) $275,330

B) $289,333

C) $87,808

D) $280,336

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Answer #1

Variable cost per unit

Variable cost per unit = Total variable costs / Number of units

= $280,000 / 6,000 units

= $46.6667 per unit

The total variable cost at an activity level of 6,200 units

The total variable cost at an activity level of 6,200 units = Number of units x Variable cost per unit

= 6,200 units x $46.6667 per unit

= $289,333

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