1. Rice Delight manufactures bags of flour. Last month, Rice Delight produced 4,500 units for a total cost of $5,250. Each month, Rice Delight incurs fixed costs of $750. Next month, Rice Delight expects to produce 6,750 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?

   		Total Cost = $7,500 Average cost per unit will remain the same.
   		Total Cost = $7,500 Average cost per unit will increase.
   		Total Cost = $7,500 Average cost per unit will decrease.
   		Total Cost = $7,875 Average cost per unit will increase.
   		Total Cost = $7,875 Average cost per unit will decrease.
   		Total Cost = $7,875 Average cost per unit will stay the same.