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    Cost estimate

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    Thomas produces 110,000 units at a cost of $440,000. Next year, Thomas expects to produce 120,000 units. Thomas relevant range is 100,000 to 120,000 units. If the cost is variable and 120,000 units are produced, the cost will: which one

    increase to what, decrease, stay the same, or be indeterminate?

    © BrainMass Inc. brainmass.com June 3, 2020, 9:32 pm ad1c9bdddf

    Solution Preview

    TC = FC + Q*VC
    For this year, 440,000 = FC + 110,000VC
    For next year, TC2 = FC + ...

    Solution Summary

    This provides an example of determining what will happen to costs in the future.