The controller for Andy's Bicycles has gathered the following cost and activity level information:

Average total cost per unit	$225.00
Production level used to calculate average cost	1,000
Total fixed costs	$80,000

What is the total cost of producing 1,000 racing bicycles?

What is the variable cost of producing each racing bicycle?

Suppose the controller uses the average cost to predict total costs. What total cost would the controller calculate for 2,500 racing bicycles?

If the controller uses the cost equation to predict total costs, what total cost would the controller calculate for 2,500 racing bicycles?