Rhome Corporation's Relevant Range of Activity Is 2,000 Units to 6,000

question 118

Multiple Choice

Rhome Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: If 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:

• A) $13,500
• B) $18,000
• C) $12,000
• D) $15,000