Production of 28,000 units, Variable cost to manufacture on one unit =$12 fixed cost = $240,000
To calculate the total cost of producing 28,000 units, you need to consider both the variable cost and the fixed cost.
Variable cost per unit: $12
Total variable cost = Variable cost per unit * Number of units
= $12 * 28,000
= $336,000
Fixed cost: $240,000
Total cost = Total variable cost + Fixed cost
= $336,000 + $240,000
= $576,000
Therefore, the total cost of producing 28,000 units is $576,000.