Question: Texas Products Inc has a division which makes burlap bags for the citrus industry. The unit has operating fixed costs of $12,000 per month, and it must sell 42,000 bags per month at $2.50 to break even. If the variable cost per bag is $2.00, what price must the division's total costs be?© BrainMass Inc. brainmass.com June 3, 2020, 11:51 pm ad1c9bdddf
Total cost = Total variable cost + Total fixed cost
In a few simple steps, this solution explains how to calculate the total costs based from the variable and fixed costs. All calculations and equations required are provided.