Rideau Manufacturing Company Has Only Variable Costs and Fixed Costs

Multiple Choice

Rideau Manufacturing Company has only variable costs and fixed costs. A review of the company's records disclosed that when 200,000 units were produced, fixed manufacturing costs amounted to $800,000 and the cost per unit manufactured was $11. On the basis of this information, how much total cost would Rideau anticipate at an activity level of 202,000 units?

A) $800,000.
B) $1,608,000.
C) $2,200,000.
D) $2,214,000.
E) $2,222,000.