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Axe Manufacturers produces a product with the following manufacturing cost hierarchy for its only current product. Activity Level Cost Unit 10 per unit Batch 250

Axe Manufacturers produces a product with the following manufacturing cost hierarchy for its only current product.

Activity Level

Cost

Unit

10

per unit

Batch

250

per batch

Product

5,000

per year

Facility

25,000

per year

Next year Axe plans to manufacture 25,000 units of product, in batches of 250 units. Axes predicted manufacturing cost for next year is:

Select one:

A. $330,000

B. $305,000

C. $750,000

D. $735,500

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