Question: Organize, 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

Organize, 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 $900,000 and the cost per unit manufactured totaled $13. On the basis of this information, how much cost would the firm anticipate at an activity level of 310,000 units?

Multiple Choice

  • $4,000,000.

  • $3,987,000.

  • $3,979,000.

  • $3,900,000.

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