Answer:
$245,700
Explanation:
Variable cost is cost thay changes with production e.g. wages
Fixed cost is cost that does not vary with production e.g. rent
Total cost = Total fixed cost + variable cost
Variable cost = $ 329,000 - $ 175,000 = $154,000
Total variable cost for 170,000 units. Average variable cost = $154,000 / 170,000 = $0.91
Total variable cost for 270,000 units = 270,000 x $0.91 = $245,700
I hope my answer helps you