Kaelker Corporation Reports That at an Activity Level of 7,000

question 95

Multiple Choice

Kaelker Corporation reports that at an activity level of 7,000 units, its total variable cost is $590,730 and its total fixed cost is $372,750. What would be the total cost, both fixed and variable, at an activity level of 7,100 units? Assume that this level of activity is within the relevant range.

• A)$963,480
• B)$977,244
• C)$971,919
• D)$970,362

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Definitions:

Acetic Acid Eardrops

A solution used in the treatment of outer ear infections that works by restoring the normal acidic environment of the ear canal.

Swab

A small piece of absorbent material on a stick or wire base, used to collect samples of substances from various parts of the body for testing or cleansing.

Hydrogen Peroxide

A chemical compound used as an oxidizer, bleaching agent, and antiseptic.