Homework Answers
Annual fixed cost = 4000000*12 = $48000000
Monthly variable cost = 251000*90 = $22590000
No. of months of production in a year= 10
annual variable cost = 22590000*10 = $225900000
So,
Annual operating cost = 48000000+225900000
Annual operating cost = $273900000 or $273.9 Million or $274 Million
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