Question

Vernon Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between 3,000 and 9,000 trophies per year. The following cost data apply to various activity levels: Required Complete the preceding table by filling in the missing amounts for the levels of activity shown in the first row of the table. (Round "Cost per unit" answers to 2 decimal places.) 3,000 5,000 7,000 9 ,000 Number of Trophies Total costs incurred Fixed $ $ 54,000 $ 54,000 $ 54,000 Variable 54,000 42,000 96,000 Total costs $ $ 54,000 $ 54,000 $ 54,000 Cost per unit Fixed $ 18.00 Variable 14.00 Total cost per trophy $ 32.00 $ 0.00 $ 0.00 $ 0.00

Answer 1

Answer is given below

	Number of Trophies	3,000	5,000	7,000	9,000
	Total Cost incurred
	Fixed	$54,000	$54,000	$54,000	$54,000
	Variable	$42,000	$70,000	$98,000	$126,000
	Total Costs	$96,000	$124,000	$152,000	$180,000
	Cost per unit
	Fixed	$18.00	$10.80	$7.71	$6.00
	Variable	$14.00	$14.00	$14.00	$14.00
	Total Cost per trophy	$32.00	$24.80	$21.71	$20.00
	For Variable cost - Cost per unit is multiplied with number of trophies