Question

Exercise 11-6 Fixed versus variable cost behavior LO 11-1 Walton Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between 9,000 and 15,000 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 Number of Trophies Total costs incurred Variable Tolos (Cost per unit T o per trophy Prev 1 of 5 Next >

Answer 1

9,000 11,000 13,000 15,000 Answer: Number of Trophies Total Cost Incurred: Fixed Variable Total Costs Cost per Unit Fixed Variable Total Cost per Torphy 48,000 42,000 90,000 48,000 51,370 99,370 48,000 60,710 108,710 48,000 70,050 118,050 3.20 5.33 4.67 10.00 4.36 4.67 9.03 3.69 4.67 4.67 8.36 7.87 Calculation: 1) Total Fixed Cost of $48,000 will remain same for all number of Trophies. 2) Variable Cost per unit i.e. $4.67 will be same and Total Variable Cost will change according to Number of Trophies.