An organisation has the following total costs at three activity levels:
Activity level (units)                            8,000              12,000          15,000
Total cost                                      £204,000         £250,000      £274,000
Variable cost per unit is constant within this activity range and there is a step up of 10% in the total fixed costs when
the activity level exceeds 11,000 units.
What is the total cost at an activity level of 10,000 units?
A   £220,000
B   £224,000
C   £227,000

A

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b

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