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Feathered Nests Produces Decorative Birdhouses

Question 53

Multiple Choice

Feathered Nests produces decorative birdhouses.The company's average cost per unit is $20.00 when it produces 2,000 birdhouses.If $4,800 of the costs are fixed,and the plant manager uses the cost equation to predict total costs,his forecast for 2,200 birdhouses will be:


A) $ 4,000.
B) $40,000.
C) $43,520.
D) $44,000.

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