question archive A food distribution company has packaging costs of $150,000 for 12,500 packages they ship to restaurants
A food distribution company has packaging costs of $150,000 for 12,500 packages they ship to restaurants
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A food distribution company has packaging costs of $150,000 for 12,500 packages they ship to restaurants. When they shipped 17,500 packages their total packaging costs were $190,000. The variable cost for shipping is:
$8.00
$10.86
$11.33
$12.00
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Answer:
Variable cost per unit=[Total cost at highest level-Total cost at lowest level]/(Highest level-Lowest level)
=(190,000-150,000)/(17500-12500)
which is equal to
=$8
