Recall the Application about the manufacture of fake killer whales used to scare sea lions off the Washington coast to answer the following question(s).
-Recall the Application. If a fake killer whale to be used to scare sea lions away from steelhead and other threatened and commercially valuable species cost $11,000 for the mold and $5,000 for materials for each fake killer whale made, then the average or per unit cost of producing five fake killer whales would be
A) $5,000.
B) $7,200.
C) $11,000.
D) $16,000.

Question

Quizplus · Accepted Answer

The total cost of producing five fake killer whales would be $11,000 (mold cost) + ($5,000 x 5) (material cost for each unit) = $36,000. Dividing by the number of units produced (5) gives an average or per unit cost of $7,200. Therefore, the correct choice is B.

Recall the Application About the Manufacture of Fake Killer Whales