Rhome 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 average fixed manufacturing cost per unit produced is closest to:
A) $3.75
B) $2.40
C) $2.70
D) $3.00

Question

Rhome 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 average fixed manufacturing cost per unit produced is closest to:
A) $3.75 
B) $2.40 
C) $2.70 
D) $3.00

Quizplus · Accepted Answer

The Answer of Rhome 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 average fixed manufacturing cost per unit produced is closest to:
A) $3.75 
B) $2.40 
C) $2.70 
D) $3.00

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