Blore Corporation Reports That at an Activity Level of 7,300

question 159

Multiple Choice

Blore Corporation reports that at an activity level of 7,300 units,its total variable cost is $511,803 and its total fixed cost is $76,650.What would be the total cost,both fixed and variable,at an activity level of 7,500 units? Assume that this level of activity is within the relevant range.

• A)$604,575
• B)$602,475
• C)$596,514
• D)$588,453

---

Definitions:

Unlevered Cost

The cost of an investment or project without the consideration of financing costs, such as interest expenses, providing a view of its profitability solely based on its operations.

Bonds Outstanding

The total amount of bonds that have been issued by a corporation or government and have not yet been repaid.

Leveraged Value

Refers to the increased value a company aims to achieve by borrowing capital or using financial leverage to fund its operations or investments.

Weighted Average

A calculation that takes into account the varying degrees of importance or values of the components in the data set.