Mantel Incorporated Began Producing Its New Line of Dolls at Its

Multiple Choice

Mantel Incorporated began producing its new line of dolls at its Connecticut plant in December of year 0. In year 1, it produced 30,000 dolls at a total cost of $385,000. In year 2, its production increased to 80,000 dolls at a total cost of $885,000. Assuming the cost structure was the same for both years, what must be the variable cost (C) and the fixed cost (F) per doll?

A) F is less than $80,000, and C is greater than $7.
B) F is greater than $60,000, and C is less than $5.
C) F is less than $100,000, and C is greater than $9.
D) F is greater than $110,000, and C is less than $6.