Elsa, Inc., has only variable costs and fixed costs. A review of the company's records disclosed that when 100,000 units were produced, fixed manufacturing costs amounted to $200,000 and the cost per unit manufactured totaled $5. On the basis of this information, how much cost would the firm anticipate at an activity level of 97,000 units? A. $485,000. B. $491,000. C. $494,000. D. $500,000.
Elsa, Inc., has only variable costs and fixed costs. A review of the company's records disclosed that when 100,000 units were produced, fixed manufacturing costs amounted to $200,000 and the cost per unit manufactured totaled $5. On the basis of this information, how much cost would the firm anticipate at an activity level of 97,000 units? A. $485,000. B. $491,000. C. $494,000. D. $500,000.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Elsa, Inc., has only variable costs and fixed costs. A review of the company's records disclosed
that when 100,000 units were produced, fixed
the cost per unit manufactured totaled $5. On the basis of this information, how much cost
would the firm anticipate at an activity level of 97,000 units?
A. $485,000.
B. $491,000.
C. $494,000.
D. $500,000.
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