Grip Manufacturing currently produces 1,000 tires per month. The following per unit data for 1,000 tires apply for sales to regular customers:
Variable direct materials $30
Variable direct labor $5
Variable manufacturing overhead $8
Fixed manufacturing overhead $12
= Total manufacturing costs $55
The plant has capacity for 3,000 tires and is considering expanding
production to 2,000 tires. What is the total cost of producing
2,000 tires?
Group of answer choices
$110,000
$68,000
$98,000
$88,000
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