Tire and Spoke Manufacturing currently produces 1,000 bicycles per month. The following per unit data apply for sales to regular customers:

The plant has capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles. What is the per unit cost of producing 2,000 bicycles?
A) $74 per unit
B) $134 per unit
C) $79 per unit
D) $158 per unit

Question

Tire and Spoke Manufacturing currently produces 1,000 bicycles per month. The following per unit data apply for sales to regular customers:

The plant has capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles. What is the per unit cost of producing 2,000 bicycles?
A) $74 per unit 
B) $134 per unit 
C) $79 per unit 
D) $158 per unit

Quizplus · Accepted Answer

The Answer of Tire and Spoke Manufacturing currently produces 1,000 bicycles per month. The following per unit data apply for sales to regular customers:

The plant has capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles. What is the per unit cost of producing 2,000 bicycles?
A) $74 per unit 
B) $134 per unit 
C) $79 per unit 
D) $158 per unit

Tire and Spoke Manufacturing Currently Produces 1,000 Bicycles Per Month