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

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Finance

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

Quarter

Volume

Units

Total cost

1 64,000200,0002 80,000240,0003100,000290,000

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

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