Feathered Nests produces decorative birdhouses. The companys average total cost

Question

Feathered Nests produces decorative birdhouses. The companys average total cost per unit is $20.00 when it produces 2,000 birdhouses. If $4634 of the costs are fixed, and the plant manager uses the cost equation to predict total costs, his forecast for 2201 birdhouses will be DO NOT round any numbers in doing your calculations other than your final answer) Feathered Nests produces decorative birdhouses. The companys average total cost per unit is $20.00 when it produces 2,000 birdhouses. If $4634 of the costs are fixed, and the plant manager uses the cost equation to predict total costs, his forecast for 2201 birdhouses will be DO NOT round any numbers in doing your calculations other than your final answer)

Explanation / Answer

variable cost per unit is 20 - 4634/2000 = 17.683

Hence total cost for 2201 units is 4634 + 17.683 * 2201 = $43,554.283

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