| 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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