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4 An organisation has the following total costs at two activity levels:
Activity level (units) 17,000 22,000
Total costs (£) 140,000 170,000
Variable cost per unit is constant in this range of activity and there is a step up of £5,000 in the total fixed costs when
activity exceeds 18,000 units.
What is the total cost at an activity level of 20,000 units?
A £155,000
B £158,000
C £160,000
D £163,000
C
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