Answer to Question #64946 in Finance for Christian mccabe
If there was discovered that upgrade costs at locations with 12 screens were $170,000 but were $110,000 at locations with six screens, then the fixed costs of upgrading at a location are: FC = 170,000 - 12x = 110,000 - 6x,
170,000 - 12x = 110,000 - 6x,
6x = 60,000,
x = $10,000 - the variable cost of one unit produced.
FC = 110,000 - 6*10,000 = $50,000.
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