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QUESTION

Hermes Logistics had maintenance costs of $63,000 at an output level of 18,000 units. The maintenance cost was a mixed cost, and the fixed portion...

Hermes Logistics had maintenance costs of $63,000 at an output level of 18,000 units. The maintenance cost was a mixed cost, and the fixed portion was $36,000. You have been asked to calculate the total maintenance cost for an output level of 27,000 units. What will you report for the total maintenance cost?

  • A
  •  : 
  •  $45,000 
  • B
  •  : 
  •  $76,500 
  • C
  •  : 
  •  $81,000 
  • D
  •  : 
  •  $67,500 
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