Mountain Manufacturing Is Trying to Predict the Cost Associated with Producing

question 24

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 costs are fixed, and the plant manager uses the average cost per unit to predict total costs, her forecast for 25,000 packs will be

• A) $1,750,000.
• B) $1,550,000.
• C) $1,400,000.
• D) $700,000.

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Definitions:

Important Decision

A significant choice or judgment that can have a profound impact on an individual's life or an organization's direction.

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