51) 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 costs are fixed, and the plant manager uses the cost equation to predict total costs, her forecast for 5,000 anchors will be:
A) $50,000.
B) $245,000.
C) $250,000.
D) $200,000.
52) The following data pertain to costs at Martin Company:
Total fixed costs
|
$250,000
|
Total variable costs
|
$80,000
|
Production level
|
40,000 units
|
The variable cost per unit is:
A) $6.25.
B) $8.25.
C) $4.25.
D) $2.00.
53) The following data pertain to costs at Martin Company:
Total fixed costs
|
$250,000
|
Total variable costs
|
$80,000
|
Production level
|
40,000 units
|
The fixed cost per unit is:
A) $6.25.
B) $8.25.
C) $4.25.
D) $2.00.
54) At Raines Company, total fixed and variable costs are $480,000 at a production level of 140,000 units. The company has total fixed costs of $200,000. The fixed cost per unit at a production level of 200,000 units is:
A) $3.43.
B) $2.40.
C) $1.00.
D) $1.43.
55) At Raines Company, total fixed and variable costs are $480,000 at a production level of 140,000 units. The company has total fixed costs of $200,000. The variable cost per unit at 200,000 units is:
A) $1.43.
B) $2.00.
C) $3.43.
D) $1.40.
56) Answer the following questions:
a. What is a cost equation?
b. If a company has fixed costs of $1,000 and variable costs of $2 per unit, what is their cost equation?
c. What would a company use a cost equation for?