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Total Cost of Hazen Corp

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Please help with the following problem.

Hazen Corp. reports that at an activity level of 2,400 units, it's total variable cost is $174,504 and it total fixed cost is $55,080. Assume that this activity level is within the relevant range.

For the activity level of 2,700 units, compute:
a. The total variable cost.
b. The total fixed cost.
c. The total cost.
d. The average variable cost per unit.
e. The average fixed cost per unit.
f. The average total cost per unit.

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Solution Summary

This solution shows step-by-step calculation to determine the total variable cost, total fixed cost, total cost, average variable cost per unit, average fixed cost per unit and average total cost per unit in an Excel file.

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a. The total variable cost.

Total variable cost for 2700 units= 2700*72.71 (Units * Average variable cost per unit)
$196,317.00

b. The total fixed cost.

This will remain same as its in the range.
Total fixed cost= $55,080.00

c. The total ...

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