Harbor Manufacturing Is Trying to Predict the Cost Associated with Producing

Multiple Choice

Harbor Manufacturing is trying to predict the cost associated with producing its anchors.At a production level of 4,000 anchors,Harbor Manufacturing's average cost per anchor is $50.00.If $20,000 of the total costs are fixed,what is the variable cost of producing each anchor?

A) $ 5
B) $ 50
C) $ 45
D) $180,000