Best birdies produces ornate birdcages. the company's average cost per unit is $18.00 when it produces 2,200 birdcages. if $5,500 of the costs are fixed, and the plant manager uses the average cost per unit to predict total costs, his forecast for 3,000 birdcages will be

Question

Presley Shelton

Business

31 March, 23:26

Best birdies produces ornate birdcages. the company's average cost per unit is $18.00 when it produces 2,200 birdcages. if $5,500 of the costs are fixed, and the plant manager uses the average cost per unit to predict total costs, his forecast for 3,000 birdcages will be

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Kelsie Fitzgerald · Answer 1

To predict the total costs for 3,000 birdcages:

Use the average cost per unit of $18.00 and multiply it by 3,000.

($18) (3,000) = $54,000

$54,000 is the predicted total costs of 3,000 birdcages.