Rhome Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: If 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
A) $13,500
B) $18,000
C) $12,000
D) $15,000

Question

Rhome Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:  If 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
A) $13,500 
B) $18,000 
C) $12,000 
D) $15,000

Quizplus · Accepted Answer

The Answer of Rhome Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:  If 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
A) $13,500 
B) $18,000 
C) $12,000 
D) $15,000

Rhome Corporation's Relevant Range of Activity Is 2,000 Units to 6,000