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

11eacbfc_c7ac_5b5e_8ffe_2bdb7ecfdb13_TB7552_00 *The average fixed manufacturing overhead cost per unit was determined by dividing the total fixed manufacturing overhead cost by 4,000 units.

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