Homework Answers
Solomon :
| Units produced | 14000 | 24000 | 34000 |
|
Total variable cost ( Total variable cost per unit * Units produced ) |
227500 [ 16.25*14000 ] |
390000 [ 16.25*24000 ] |
552500 [ 16.25*34000 ] |
Adam's company :
| Required a : | ||
| March | April | |
|
Rent cost per unit [ Rent cost / Production (units) ] |
9 [ 1800 / 200 ] |
3.6 [ 1800 / 500 ] |
|
Utility cost per unit [ Utilities cost / Production (units) ] |
3.5 [ 700 / 200 ] |
3.5 [ 1750 / 500 ] |
| Required b : | |
| Rent cost | Fixed |
| Utility cost | Variable |
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Identify which cost is variable and which is fixed.
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Separately calculate the rental cost per unit and the utilities
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Identify which cost is variable and which is fixed.
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