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?

Question

Quizplus · Accepted Answer

The total cost of producing 2,000 birdhouses can be calculated by multiplying the average cost per unit with the total number of units produced.

Total cost = Average cost per unit x Number of units produced

Total cost = $20.00 x 2,000

Total cost = $40,000

Therefore, the best choice is C, which is $40,000.

Feathered Nests Produces Decorative Birdhouses