Chapter 10
Cost prediction = fixed cost + variable cost per unit × no. of units
For Jayco:
Total cost = $5,000 + $10 × no. of units
Prediction for output of 3,000 units
Total cost = $5,000 + ($10 × 3,000)
= $35,000
Illustrations and further practice
Now try example 1 from Chapter 13.
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