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Machine costs
K: $26,000/Production 80,000 units
D: $30,000/Production 80,000 unitsMachine costs are semi variable; the variable element relates to set up cost, which are based upon the number of batches made. K has a fixed cost of $4000 and D a fixed cost of $6000. Whilst both components are currently made in batches of 500, this would need to change, with immediate effect, to batches 400.
-What is the total variable costs of K and D?
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