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problem: Shipping cost at Junk Food Imports is a mixed cost with variable & fixed components. Past records indicate total shipping cost was dollar ($) 18,000 for 16,000 pounds shipped & dollar ($) 22,500 for 22,000 pounds shipped. Suppose that this activity is within the relevant range, if the firm plans to ship 18,000 pounds next month, determine the expected shipping cost;

[A] $19,500

[B] $24,000

[C] $18,500

[D] $20,400

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M922822

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