Question

Question 14 (1 point) Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. The total of its variable cost is $150 000. Fixed costs were $100 000. What is the expected revenue this year at full capacity? OA) $791 667 OB) $1 341 667 OC) $300 000 OD) $550 000 E) $250 000

Answer 1

Solution: Calculation of Expected Revenue at full capacity Particulars Amount Total Revenue (1) $ 4,75,000 Current Operating Capacity (2) 60.00% Full Capacity (1/2) $ 7,91,667 Therefore Option 'A'is Correct i.e., $ 791 667 * Kindly Comment down for any clarifications/ queries and please upvote.