Solved: Best birdies produces ornate birdcages the companys average, Accounting Basics

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Best birdies produces ornate birdcages the companys average

Best Birdies produces ornate birdcages. The company's average cost per unit is $18.00 when it produces 2,200 birdcages. If $5,500 of the costs are fixed, and the plant manager uses the average cost per unit to predict total costs, his forecast for 3,000 birdcages will be

A. $39,600.
B. $52,000.
C. $54,000.
D. $14,400.

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Accounting Basics: Best birdies produces ornate birdcages the companys average

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