Harbour Manufacturing Is Trying to Predict the Cost Associated with Producing

question 36

Multiple Choice

Harbour Manufacturing is trying to predict the cost associated with producing its anchors. At a production level of 4,000 anchors, Harbour Manufacturing's average cost per anchor is $50.00.
-At Harbour Manufacturing if $20,000 of the costs are fixed, and the plant manager uses the cost equation to predict total costs, her forecast for 5,000 anchors will be

• A) $50,000.
• B) $245,000.
• C) $250,000.
• D) $200,000.

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