CalcuCo Hired Effner & Associates to Design a New Computer-Aided

question 104

Multiple Choice

CalcuCo hired Effner & Associates to design a new computer-aided manufacturing facility. The new facility was designed to produce 300 computers per month. The variable costs for each computer are $660 and the fixed costs total $74,700 per month. The average cost per unit, if the facility normally expects to operate at eighty-five percent of capacity, is calculated to be (round to nearest cent) :

• A) $952.94.
• B) $909.00.
• C) $936.67.
• D) $971.25.
• E) $942.47.