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Rawhide Inc. manufactures leather handbags. Rawhide's relevant range is 6,000 to 9,000 handbags per month. Rawhide's total fixed manufacturing costs are $576,000 per month.
Rawhide Inc. manufactures leather handbags. Rawhide's relevant range is 6,000 to 9,000 handbags per month. Rawhide's total fixed manufacturing costs are $576,000 per month. During the month of October, Rawhide produces 8,000 handbags at an average per-unit manufacturing cost of $108 per handbag. During the month of November, Rawhide's production drops 10% from 8,000 handbags to only 7,200 handbags. What is the percentage increase or decrease in the average per-unit manufacturing cost of the handbags produced in November as compared to the handbags produced in October? Round to one decimal point. O 6.9 percent decrease O 4.7 percent increase 6.9 percent increase O 7.4 percent increase None of the above Ents
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