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How much is jordan budgeted fixed costs at units

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Problem 1: Total production costs for Jordan, Inc. are budgeted at $2,300,000 for 50,000 units of budgeted output and $2,800,000 for 60,000 units of budgeted output. Because of the need for additional facilities, budgeted fixed costs for 60,000 units are 25 percent more than budgeted fixed costs for 50,000 units. How much is Jordan's budgeted fixed costs at 60,000 units?

Choices:

Option 1: $1,000,000

Option 2: $800,000

Option 3: $1,031,250

Option 4: $1,875,000

Reference no: EM132802548

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