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How much would the total expected quality control cost be

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Question - So a company is a highly automated manufacturer. At an activity level of 7,600 units, the company's total quality control cost equal $312,400. This amount includes equipment lease cost of $74,000 (all fixed) and manual inspection cost of $106,400 (all variable). The remaining $132,000 of the total quality control cost consists of electronic testing (mixed). At an activity level of 9,600 units, electronic testing cost totals $152,000.

Assuming that the relevant range includes all of the activity levels mentioned in this problem for the company.

If 8,400 units are projected for the next period, how much would the total expected quality control cost be?

Reference no: EM132896393

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