Delta Lawn Furniture manufactures a single model of lawn chairs. In June it produced 10,000 units at a total cost of $70,000. If fixed costs are $30,000 per month, what would be the total cost per chair if production dropped to 6,000 units per month?

Question 12Answer

a.

$7.00

b.

$11.00

c.

$4.00

d.

$9.00