97.7k views
5 votes
Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 25,000 to 100,000 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared: Memory Chips Produced 40,000 60,000 90,000 Total Variable Costs $1,400,000 D J Total Fixed Costs 800,000 E K Total Costs $2,200,000 F L Variable Costs per Unit A G M Fixed Cost Per Unit B H N Total Cost per Unit C I O Find the missing amounts for A-O A. ______________ B. ______________ C. ______________ D. ______________ E. ______________ F. ______________ G. ______________ H. ______________ I. _______________ J. ________________ K. _______________ L. _________________ M. _________________ N. _____________________ O. __________________

User Blaneyneil
by
7.8k points

1 Answer

6 votes

Answer and Explanation:

The computation of the missing amount is as follows

Components produced 40,000 60,000 90,000

Total cost

Total variable cost $1,400,000 $2,100,000 $3,150,000

(60,000 × $35) (90,000 × $35)

Total fixed cost $800,000 $800,000 $800,000

Total cost $2,200,000 $2,900,000 $3,950,000

Cost per unit

Variable cost per unit $35 $35 $35

($1,400,000 ÷ 40,000)

Fixed cost per unit $20 $13.33 $8.89

($800,000 ÷ 40,000) ($800,000 ÷ 60,000) ($800,000 ÷ 90,000)

Total cost per unit $55 $46.33 $43.89

The total cost per unit come from

= Variable cost per unit + fixed cost per unit

User Manoj Perumarath
by
8.2k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories