Question: Bowman, Inc., has only variable costs and fixed costs. A review of the company's records disclosed that when 300,000 units were produced, fixed manufacturing costs
Bowman, Inc., has only variable costs and fixed costs. A review of the company's records disclosed that when 300,000 units were produced, fixed manufacturing costs amounted to $1,800,000 and the cost per unit manufactured totaled $18. On the basis of this information, how much cost would the firm anticipate at an activity level of 325,000 units?
$5,700,000.
$5,400,000.
$5,679,000.
$5,687,000.
Some other amount not listed above.
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