Reference no: EM132755298

Question - Auto USA spent $300 million in total to 50,000 cars this year. The $300 million breaks down as follows: $50 million in fixed costs and $5,000 of variable costs to produce each car. Next year it plans to produce 60,000 cars.

a) Indicate the current average cost per car this year.

b) Assuming the fixed costs are appropriate for a relevant range up to 65,000 units, what is the total forecasted cost to produce the 60,000 cars?

c) What will the forecasted average cost per car be for the upcoming year?

d) Calculate the cost of goods manufactured.