Mantel Incorporated began producing its new line of dolls at its Connecticut plant in December of year 0.In year 1,it produced 30,000 dolls at a total cost of $385,000.In year 2,its production increased to 80,000 dolls at a total cost of $885,000.Assuming the cost structure was the same for both years,what must be the variable cost (c) and the fixed cost (F) per doll?
A) F is less than $80,000,and c is greater than $7.
B) F is greater than $60,000,and c is less than $5.
C) F is less than $100,000,and c is greater than $9.
D) F is greater than $110,000,and c is less than $6.
Correct Answer:
Verified
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