The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product:
-The best estimate of the total monthly fixed manufacturing cost is:
A) $222,000
B) $284,400
C) $305,200
D) $633,600

Question

The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product: 
-The best estimate of the total monthly fixed manufacturing cost is:
A) $222,000 
B) $284,400 
C) $305,200 
D) $633,600

Quizplus · Accepted Answer

The best estimate of the total monthly fixed manufacturing cost is $222,000, as it is the lowest value among the options, typically representing fixed costs which do not vary with production levels.

The Following Production and Average Cost Data for Two Levels