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Falcon Industries manufactures boat anchors. Falcon expects to produce 9,000 anchors during the upcoming year, and Falcon's plant manager uses a mixed cost equation
Falcon Industries manufactures boat anchors. Falcon expects to produce 9,000 anchors during the upcoming year, and Falcon's plant manager uses a mixed cost equation to estimate the total manufacturing costs. The plant manager expects Falcon's current year total fixed manufacturing costs and per-unit variable manufacturing costs to be the same as in the prior year. During the prior year, Falcon produced 5,300 anchors at an average total cost of $55 per anchor, and Falcon's total fixed manufacturing costs were $100,700. What is the estimated total cost of manufacturing 9,000 anchors in the upcoming year? O $424,700 O $324,000 $495,000 $530,300 None of the above
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