The highest value of total cost was $760,000 in June for Mantilla Beverages, Inc. Its lowest value of total cost was $560,000 in December. The company makes a single product. The production volumes in June and December were 15,000 and 7,000 units, respectively. What is the fixed cost per month? (Round any intermediate calculations to the nearest cent, and the final answer to the nearest dollar.) A. $200,000 B. $385,000 C. $560,000 D. $7,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter9: Responsibility Accounting And Decentralization
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Problem 8EA: Using the information in the previous exercises about Marleys Manufacturing, determine the operating...
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The highest value of total cost was $760,000 in June for
Mantilla Beverages, Inc. Its lowest value of total cost
was $560,000 in December. The company makes a
single product. The production volumes in June and
December were 15,000 and 7,000 units, respectively.
What is the fixed cost per month? (Round any
intermediate calculations to the nearest cent, and the
final answer to the nearest dollar.)
A. $200,000
B. $385,000
C. $560,000
D. $7,000
Transcribed Image Text:The highest value of total cost was $760,000 in June for Mantilla Beverages, Inc. Its lowest value of total cost was $560,000 in December. The company makes a single product. The production volumes in June and December were 15,000 and 7,000 units, respectively. What is the fixed cost per month? (Round any intermediate calculations to the nearest cent, and the final answer to the nearest dollar.) A. $200,000 B. $385,000 C. $560,000 D. $7,000
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