Meginnis Corporation's Relevant Range of Activity Is 3,000 Units to 7,000

question 129

Multiple Choice

Meginnis Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

• A) $79,200
• B) $63,600
• C) $62,700
• D) $53,700

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Definitions:

Implantation

The process by which a fertilized egg attaches itself to the lining of the uterus where it can then develop into a fetus.

Fundus

Bottom, or rounded end, of a hollow organ—for example, the fundus of the stomach or uterus.

Uterine Tube

One of the tubes leading on each side from the uterus to the ovary; consists of the infundibulum, ampulla, isthmus, and uterine parts; also called fallopian tube or oviduct.

Cytotrophoblast

Inner layer of the trophoblast, composed of individual cells.