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# At a volume of 10,000 units, Company P incurs \$30,000 in factory overhead costs, including \$10,000 in fixed costs.

At a volume of 10,000 units, Company P incurs \$30,000 in factory overhead costs, including \$10,000 in fixed costs. Assuming that this activity is within the relevant range, if volume increases to 12,000 units, Company P would expect to incur total costs of:

total= fixed + variable cost
variable cost= ?
variable cost per unit= ?
total cost= total fixed cost + total variable cost*at new activity level = ??

Solution:
total= fixed + variable cost
variable cost=
total - fixed
= 30000-10000
=
20000
10000 units variable cost is 20000
variable cost per unit=
20000/10000
=2
total cost= total fixed cost +...

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