Sea Side Enterprises Is Trying to Predict the Cost Associated

question 283

Multiple Choice

Sea Side Enterprises is trying to predict the cost associated with producing its anchors.At a production level of 5,000 anchors,Sea Side Enterprises average cost per anchor is $52.00.If $15,000 of the costs are fixed,and the plant manager uses the average cost per unit to predict total costs,her forecast for 6,000 anchors will be

• A)$260,000.
• B)$312,000.
• C)$309,000.
• D)$52,000.

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