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Question(s) / Instruction(s):

Krouse Corporation reports that at an activity level of 8,500 units, its total variable cost is $541,535 and its total fixed cost is $198,200. What would be the total cost, both fixed and variable, at an activity level of 8,900 units? Assume that this level of activity is within the relevant range.

A.            $763,314

B.            $765,219

C.            $739,735

D.            $567,019

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