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Silver Company is a food manufacturer and produced 15,000 units of its product this year. Total...

Silver Company is a food manufacturer and produced 15,000 units of its product this year. Total fixed costs were $45,000 ($3.00/unit) and total variable costs were $60,000 ($4.00/unit). If Silver were to produce 20,000 units, it would need to rent an additional building to have room for the additional capacity. The rent on the additional building would be $10,000 per year. At a production level of 20,000 units, what would be the total costs (fixed and variable) incurred by Silver Company this year?

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Answer #1
At production level        20,000
Variable Costs        80,000 =20000*4
Fixed Costs        55,000 =45000+10000
Total Costs ( Fixed & variable ) $ 135,000
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