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QUESTION 14 Ray's Bake Shop manufactures bags of flour. Last month, Ray's produced 3,000 units for a total cost of $3,500. Each month, Ray's incurs
QUESTION 14 Ray's Bake Shop manufactures bags of flour. Last month, Ray's produced 3,000 units for a total cost of $3,500. Each month, Ray's incurs fixed costs of $500. Next month, Ray's expects to produce 4,500 units next month to meet changing demand. First, What will be the total cost of manufacturing next month? Second, what will happen to the average cost per unit next month? O Total Cost = $5,000 Average cost per unit will remain the same. O Total Cost = $5,250 Average cost per unit will decrease. O Total Cost - $5,250 Average cost per unit will stay the same. O Total Cost = $5,000 Average cost per unit will increase. Total Cost = $5,000 Average cost per unit will decrease. O Total Cost = $5,250 Average cost per unit will increase
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