Harbour Manufacturing Is Trying to Predict the Cost Associated with Producing

question 255

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 total costs are fixed, what is the variable cost of producing each anchor?

• A) $5
• B) $50
• C) $45
• D) $180,000

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