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Feathered Nests Produces Decorative Birdhouses

Question 81

Multiple Choice

Feathered Nests produces decorative birdhouses. The company's average cost per unit is $20.00 at a production level of 2,000 birdhouses. What is the total cost of producing 2,000 birdhouses?
-If $4,800 of the total costs are fixed, what is the variable cost of producing each birdhouse?


A) $2.40
B) $17.60
C) $20.00
D) $35,200

Correct Answer:

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