At a production level of 7,150 units, a project has total cash costs of $142,673. The variable cost per unit is $9.28, and the depreciation is $4,200. What is the amount of the total fixed costs?

Multiple Choice
$70,552
$72,121
$66,352
$76,321
$80,521

To find the total fixed costs, we can use the following formula for total cash costs:

\[
\text{Total Cash Costs} = (\text{Variable Cost per Unit} \times \text{Number of Units}) + \text{Fixed Costs}
\]

Where:
- Total Cash Costs = $142,673
- Variable Cost per Unit = $9.28
- Number of Units = 7,150
- Fixed Costs = ?

### Step-by-step calculation:

1. **Calculate total variable costs:**
   \[
   \text{Total Variable Costs} = 9.28 \times 7,150 = 66,752
   \]

2. **Plug values into the total cash costs equation:**
   \[
   142,673 = 66,752 + \text{Fixed Costs}
   \]

3. **Solve for fixed costs:**
   \[
   \text{Fixed Costs} = 142,673 - 66,752 = 75,921
   \]

Since depreciation is part of fixed costs, we add the depreciation to this value:

4. **Add depreciation to fixed costs:**
   \[
   \text{Total Fixed Costs} = 75,921 + 4,200 = 80,121
   \]

Thus, the total fixed costs (including depreciation) are approximately **$80,121**, but none of the given choices matches this exactly. The closest option is **$80,521**.

### Answer: 
**$80,521**

Would you like further details on the calculation? Here are some follow-up questions:

1. How does depreciation impact fixed costs?
2. What are the differences between fixed and variable costs in project budgeting?
3. How could a change in production level affect the variable cost calculation?
4. What other factors could influence total cash costs in a project?
5. What is the significance of cash flow analysis in production management?

**Tip:** Always check if depreciation is included or needs to be added when calculating fixed costs.

At a production level of 7,150 units, a project has total cash costs of $142,673. The variable cost per unit is $9.28, and the depreciation is $4,200. What is the amount of the total fixed costs? Multiple Choice: $70,552, $72,121, $66,352, $76,321, $80,521

Learn how to calculate the total fixed costs for a project with a production level of 7,150 units, total cash costs of $142,673, a variable cost per unit of $9.28, and depreciation of $4,200. This detailed solution explains step-by-step how to find the correct fixed costs using algebraic formulas.

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