An organisation has the following total costs at three activity levels: Activity level (units) 8,000 12,000 15,000 Total cost £204,000 £250,000 £274,000 Variable cost per unit is constant within this activity range and there is a step up of 10% in the total fixed costs when the activity level exceeds 11,000 units. What is the total cost at an activity level of 10,000 units? A £220,000 B £224,000 C £227,000 A
|