Question

Relevant Range and Fixedand Variable Costs

Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 76,800 to 128,000 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:
Components produced 76,800 96,000 128,000
Total costs:
Total variable costs . . . . . . . . .$27,648
Total fixed costs . . . . . . . . . . . .30,720
Total costs . . . . . . . . . . . . . . . . .$58,368
(Cost per unit: Variable cost per unit . . . . . . .
(Fixed cost per unit . . . . . . . . . .
Total cost per unit . . . . . . . . . .
Complete the cost schedule below.
When computing the cost per unit, round to two decimal places. Round all other values to the nearest dollar.

Answer 1

Results are below.

Step-by-step explanation:

Giving the following information:

Components produced 76,800 96,000 128,000

Total costs:

Total variable costs . . . . . . . . .$27,648

Total fixed costs . . . . . . . . . . . .30,720

Total costs . . . . . . . . . . . . . . . . .$58,368

To calculate the unitary variable costs and unitary fixed costs, we need to use the following formulas:

unitary variable cost= total variable cost/number of units

unitary fixed cost= total fixed cost/number of units

For 76,800:

unitary variable cost= 27,648/76,800= $0.36

unitary fixed cost= 30,720/76,800= $0.4

Total unitary cost= 58,368/76,800= $0.76

For 96,000:

unitary variable cost= 27,648/96,000= $0.29

unitary fixed cost= 30,720/96,000= $0.32

Total unitary cost= 58,368/96,000= $0.61

For 128,000:

unitary variable cost= 27,648/128,000= $0.22

unitary fixed cost= 30,720/128,000= $0.24

Total unitary cost= 58,368/128,000= $0.46