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

11eacbfc_c7a0_9b2c_8ffe_e70e28eed069_TB7552_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