Mountain Manufacturing Is Trying to Predict the Cost Associated with Producing

question 361

Multiple Choice

Mountain Manufacturing is trying to predict the cost associated with producing its hiking packs. At a production level of 20,000 packs, Mountain Manufacturing's average cost per pack is $70.00.
-At Mountain Manufacturing if $200,000 of the total costs are fixed, what is the variable cost of producing each pack?

• A) $50
• B) $60
• C) $70
• D) $40

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