Total fixed costs for Randolph Manufacturing are $764,000. Total costs, including both fixed and variable, are $1,030,000 if 200,000 units are produced. The fixed cost per unit at 208,500 units would be closest to.

Total fixed cost= 764,000

Total variable cost= $277,305

Total cost= $1,041,305

Explanation:

Giving the following information:

Total fixed costs for Randolph Manufacturing are $764,000. Total costs, including both fixed and variable, are $1,030,000 if 200,000 units are produced.

First, we need to calculate the unitary variable cost:

Total cost= fixed costs + total variable cost

1,030,000= 764,000 + total variable cost

total variable cost= 266,000

Unitary variable cost= 266,000/200,000= $1.33 per unit

Now, we can calculate the total cost for 208,500

Total cost= 764,000 + (1.33*208,500)= $1,041,305

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