Schonhardt 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) $16,800
B) $14,000
C) $12,600
D) $11,200

Question

Schonhardt 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) $16,800 
B) $14,000 
C) $12,600 
D) $11,200

Quizplus · Accepted Answer

11ea7761_1999_bcdc_81a5_09a6cdc36dc8_TB2580_00 *The average fixed manufacturing overhead cost per unit was determined by dividing the total fixed manufacturing overhead cost by 4,000 units.

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