Question

Exercise 11-6 Fixed versus variable cost behavior LO 11-1 Fanning Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between 10,000 and 16,000 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.) 10,000 12,000 14,000 16,000 Number of Trophies Total costs incurred Fixed $ 56,000 42.000 Variable Total costs $ 98 000 Cost per un Fored Variable Total cost per trophy $ 9.80

Answer 1

	Number of Trophies		10,000	12,000	14,000	16,000
	Total costs incurred
	Fixed		56,000	56,000	56,000	56,000
	Variable		42,000	50400	58800	67200
	total costs.		98,000	106,400	114,800	123,200
	cost per unit
	Fixed		5.6	4.67	4	3.5
	variable		4.2	4.2	4.2	4.2
	total cost per trophy		9.8	8.87	8.2	7.7