Question

Relevant Range and Fixed and Variable Costs

Third World Gamer Inc. manufactures components for computer games within a relevant range of 128,000 to 200,000 disks per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:

Components produced		128,000		160,000		200,000
Total costs:
	Total variable costs	$57,600		(d)		(j)
	Total fixed costs	64,000		(e)		(k)
	Total costs	$121,600		(f)		(l)
Cost per unit:
	Variable cost per unit	(a)		(g)		(m)
	Fixed cost per unit	(b)		(h)		(n)
	Total cost per unit	(c)		(i)		(o)

Complete the cost schedule below. Round costs per unit to the nearest cent.

Cost Schedule
Components produced		128,000		160,000		200,000
Total costs:
	Total variable costs	$57,600		$		$
	Total fixed costs	64,000		$		$
	Total costs	$121,600		$		$
Cost per unit:
	Variable cost per unit	$		$		$
	Fixed cost per unit	$		$		$
	Total cost per unit	$		$		$

Answer 1

Complete the cost schedule below. Round costs per unit to the nearest cent.

Cost Schedule
Components produced		128,000		160,000		200,000
Total costs:
	Total variable costs	$57,600		$72000		$90000
	Total fixed costs	64,000		$64000		$64000
	Total costs	$121,600		$136000		$154000
Cost per unit:
	Variable cost per unit	57600/128000 = 0.45		$0.45		$0.45
	Fixed cost per unit	$0.50		$0.40		$0.32
	Total cost per unit	$0.95		$0.85		$0.77