Ask Question
10 April, 00:28

Maryland Incorporated produces toys. Total manufacturing costs are $360,000 when 50,000 toys are produced. Of this amount, total variable costs are $140,000. What are the total production costs when 85,000 toys are produced? (Assume the same relevant range for both production levels.)

+1
Answers (1)
  1. 10 April, 00:58
    0
    Answer: $458,000

    Explanation:The computation of the total production cost in case of 85,000 toys are produced

    The fixed cost is

    = Total manufacturing cost - total variable cost

    = $360,000 - $140,000

    = $220,000

    And, the variable cost per unit is

    = $140,000 : 50,000 toys

    = $2.8

    So for 85,000 toys, the total production cost is

    = Fixed cost + Variable cost * variable cost per unit

    = $220,000 + 85,000 toys * $2.8

    = $220,000 + $238,000

    = $458,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Maryland Incorporated produces toys. Total manufacturing costs are $360,000 when 50,000 toys are produced. Of this amount, total variable ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers