Rideau Manufacturing Company Has Only Variable Costs and Fixed Costs

question 3

Multiple Choice

Rideau Manufacturing Company has only variable costs and fixed costs. A review of the company's records disclosed that when 200,000 units were produced, fixed manufacturing costs amounted to $800,000 and the cost per unit manufactured was $11. On the basis of this information, how much total cost would Rideau anticipate at an activity level of 202,000 units?

• A)$800,000.
• B)$1,608,000.
• C)$2,200,000.
• D)$2,214,000.
• E)$2,222,000.

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