Your factory manufactures 200 electric bikes per month. The direct cost per bike is $1,500, and the monthly overhead is $120,000. What is the average cost per electric bike including overhead? a. $1,500 b. $2,100 c. $3,000 d. $1,200

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 20E
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Your factory manufactures 200 electric bikes per month. The direct cost per
bike is $1,500, and the monthly overhead is $120,000.
What is the average cost per electric bike including overhead?
a. $1,500
b. $2,100
c. $3,000
d. $1,200
Transcribed Image Text:Your factory manufactures 200 electric bikes per month. The direct cost per bike is $1,500, and the monthly overhead is $120,000. What is the average cost per electric bike including overhead? a. $1,500 b. $2,100 c. $3,000 d. $1,200
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