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What will be the distribution costs in quarter

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Reference no: EM132973263

A company has recorded the following activity levels and distribution costs for the previous three quarters:

Quarter           Volume         Total cost

                           Units                    £

1                    64,000               200,000

2                       80,000              240,000

3                       100,000                 290,000

Problem 1: What will be the distribution costs in quarter 4 if the expected level of activity is 85,000 units? You should assume that the cost behaviour pattern in the previous three quarters will continue in quarter 4.

Select one:

A. £252,500

B. £255,000

C. £254,303

D. £253,963

Reference no: EM132973263

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