Question
1) The controller for Truman Canoes has gathered the following cost and activity level information: Average total cost per unit $30000 Production level used to
1) The controller for Truman Canoes has gathered the following cost and activity level information: Average total cost per unit $30000 Production level used to calculate average cost 2,000 Total fixed costs $100,000 Required: 1 What is the total cost of producing 2,000 fiberglass canoes? 2 What is the variable cost of producing each fiberglass canoe? 3 Suppose the controller uses the average cost to predict total costs What total cost would the controller calculate for 3,000 fiberglass canoes? 4 If the controller uses the cost equation to predict total costs, what total cost would the controller calculate for 3,000 fiberglass canoes?
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