Runaround Corporation sells running shoes and during January they ran production machines for 29 comma 000 hours total and incurred $ 10 comma 500 in maintenance costs. During July they ran production machines for 15 comma 000 hours total and incurred $ 8 comma 600 in maintenance costs. Based on this data, what will total maintenance costs be if the machines are run for 18 comma 500 hours? (Round intermediary calculations to the nearest cent.)

$9,075

Explanation:

As we know that:

Variable cost per hour = Cost Difference / Units Difference

Variable cost per hour = ($10,500- $8,600) / (29,000 - 15,000)

= $00.1357142857142857 per hour

Which means:

Fixed Cost = $10,500 - (29,000 * $0.0.1357142857142857 per hour)

= $6,564

The total variable cost for 18,500 hours is calculated as under:

Total Variable Cost = 18,500 Unit * $0.1357142857142857 per hour

= $2,511

Total Maintenance Costs = $6,564 + $2,511 = $9,075

hi there, i would say your answer is:

b. there is a fixed quantity of resources and technology available.

hope that : )