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What Was All That One in a Million Talk, Inc., a manufacturer of model cross country mopeds, incurred the following per unit costs in its
What Was All That One in a Million Talk, Inc., a manufacturer of model cross country mopeds, incurred the following per unit costs in its monthly operations: Month Activity Level Cost Per Moped June 100 mopeds $100.00 July 85 mopeds $112.00 August 80 mopeds $93.75 September 75 mopeds $105.00 Assuming the relevant range extends to 1,560 mopods per year and the above data set does not contain an outlier, which of the following statements is correct? OA. The manufacturing costs are variable costs because the per unit amount changes with the activity level OB. For each additional moped manufactured, costs are expected to increase by $85.00 OC. The annual fixed costs are expected to be $1,500. OD. I 1,500 mopeds are expected to be produced in a given year, the estimated total annual costs would be $129,000. O E. More than one of the above statements is correct
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