Organize, Inc. has only variable costs and fixed costs. A review of the company's records disclosed that when 200,000 units were produced, fixed manufacturing costs amounted to $800,000 and the cost per unit manufactured totaled $11. On the basis of this information, how much cost would the firm anticipate at an activity level of 205,000 units?
A. $2,222,000.
B. $2,214,000.
C. $2,235,000.
D. $2,200,000.
E. None of the answers is correct.
Answer: C
Business
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