Answer:
Total cost= $108,750
Explanation:
Giving the following information:
For 20,000 units:
Total budgeted variable cost= $85,000
Total budgeted fixed costs= $45,000
First, we need to calculate the unitary variable cost:
Unitary variable cost= 85,000/20,000= $4.25
The fixed costs remain constant at a total level.
Now, we can determine the total cost for 15,000 units:
Total cost= 4.25*15,000 + 45,000
Total cost= $108,750
