Question

Haris Company manufactures and sells a single product. A partilly completed schedule of the company's total costs and costs per unit over the relevant range of 64,000 to 104,000 units is given below Required: 1. Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below oet ttecmentiny produces and sels 94,000 units during the year at a seling price of 5814 per unit Prepare a contribution Complete this question by entering your answers in the tabs below. Required 1Required2 Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. (Round the per unit variable cost and fixed cost to 2 decimal places.) Units Produced and Sold 64,000 84,000 Total costs 160.000m 390,000 550,000 Variable costs Fixed costs Total costs Cost per unit Varíable cost Fixed cost Total cost per unit Required 2

Answer 1

Requirement 1: Units produced and sold 64,000 84,000 104,000 Total costs Variable cost Fixed cost 160,000 390,000 550,000 210,000 390,000 600,000 260,000 390,000 650,000 Total costs Cost per unit Variable cost Fixed cost Total cost per unit 2.50 6.09 8.59 2.50 4.64 7.14 2.50 3.75 6.25

Explanation From 64,000 units column we can find variable cost per unit Total variable cost - $160,000 Variable cost per unit $160,000/ 64,000 units $2.5 per unit Variable cost for 84,000 units 84,000 units X $2.5 $210,000 Variable cost for 104,000 units 104,000 units X $2.5 $260,000 Fixed cost per unit for 64,000 unit level is $390,000/64,000 $6.09 per unit Fixed cost per unit for 84,000 unit level is $390,000/84,000 $4.64 per unit Fixed cost per unit for 104,000 unit level is $390,000/104,000 $3.75 per unit Fixed cost $390,000 remains same regardless of the volume produced Variable cost: The cost which changes with change in output.Variable cost remains same per unit Fixed cost: The cost which remains same regardless of the volume produced.Fixed cost changes in units that is as the units produced increases ,fixed cost per unit decreases and vice-versa