Questions: If the total cost is planned to be 12,000, the total fixed costs are 4,000, and the variable cost per unit of activity is 4, the total activity being planned for is units.

If the total cost is planned to be 12,000, the total fixed costs are 4,000, and the variable cost per unit of activity is 4, the total activity being planned for is units.
Transcript text: If the total cost is planned to be $12,000, the total fixed costs are $4,000, and the variable cost per unit of activity is $4, the total activity being planned for is $\square$ units.
failed

Solution

failed
failed

Solution Steps

Step 1: Define the relationship between total cost, fixed costs, variable costs, and activity level.

Total Cost = Fixed Costs + (Variable Cost per Unit * Activity Level)

Step 2: Plug in the given values.

We are given: Total Cost = $12,000 Fixed Costs = $4,000 Variable Cost per Unit = $4

We need to find the Activity Level. Let's represent the activity level with the variable 'x'.

So, the equation becomes:

$12,000 = $4,000 + ($4 * x)

Step 3: Solve for x (Activity Level)

Subtract $4,000 from both sides of the equation:

$12,000 - $4,000 = $4 * x

$8,000 = $4 * x

Now, divide both sides by $4:

$8,000 / $4 = x

x = 2,000

Final Answer

\\(\boxed{2000}\\) units.

Was this solution helpful?
failed
Unhelpful
failed
Helpful