Question

Relevant Range and Fixed and Variable Costs Third World Gamer Inc. manufactures components for computer games within a relevant range of 114,000 to 182,400 disks per year. Within this range, the following partially completed manufacturing cost schedule has been prepared: Components produced 114,000 144,000 182,400 Total costs: Total variable costs $49,020 Total fixed costs 54,720 Oos Total costs $103,740 Cost per unit: D Variable cost per unit Fixed cost per unit C Total cost per unit Complete the cost schedule below. Round costs per unit to the nearest Cost Schedule Components produced 114,000 144,000 132.400

Answer 1

Calculation of cost schedule.

Computing Cost Schedule Components produced Total cost Total variable cost Total Fixed cost 114000 144000 182400 61920 4720 66640 49020 78432 4720 4720 Total cost 53740 83152 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 0.43 0.43 0.43 0.03 0.03 0.04 0.47 0.46 0.46