Total cost(TC)= Variable Cost(VC) + Fixed Cost(FC)
TC =FC + VC
y = mx + c
y - TC
m - VC
x - number of units
c - FC
Forecasted Output(x) = 10,000 units
TC = 50*4000 + 100000
TC = 30*4000 + 250,000
therefore, extra cost incurred = $370,000-$300,000= $70,000.
therefore, extra cost incurred
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