Total Cost
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An analysis of a particular mixed cost indicates it will be an average of $0.65 per hour at an activity level of 18,000 hours and $11,700 in total at an activity level of 20,000 hours. Assuming that this activity is within the relevant range, what is this cost expected to total at an activity level of 16,000 hours?
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Solution Summary
The solution explains how to determine the cost equation and use it to calculate the total cost.
Solution Preview
We find the fixed and variable part of the total cost.
At 18,000 hours ...
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