Fiori Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: The incremental manufacturing cost that the company will incur if it increases production from 5,000 to 5,001 units is closest to:
A) $16.20
B) $10.80
C) $13.80
D) $14.30

Question

Fiori Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:  The incremental manufacturing cost that the company will incur if it increases production from 5,000 to 5,001 units is closest to:
A) $16.20 
B) $10.80 
C) $13.80 
D) $14.30

Quizplus · Accepted Answer

11eacbfc_c7a2_9709_8ffe_9f09f19f05f2_TB7552_00

Fiori Corporation's Relevant Range of Activity Is 3,000 Units to 7,000