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George Rentals offers machine rental services for concrete cutting. Consider the following costs of the company over the relevant range of 4,000 to 10,000 hours of operating time for its concrete cutting equipment.
Hours of Operating Time:
4,000 ; 5,000 ; 8,000 ; 10,000
Total Costs:
Variable Costs $ 20,000Fixed Costs $82,000Total Costs $102,000
Problem 1: What are the estimated total costs at a volume of 5,000 hours?
A) $ 94,000B) $107,000C) $108,000D) $100,000
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