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Exercise 24-5 Your answer is partially correct. Try again. Fallon Company uses flexible budgets to control its selling expens
URIUN Downloadable eTextbook Assignment RCES Variable Costs Sales Commissions 11,690 14,126 Advertising 6,680 8,072 Study Tra
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Answer #1

TOTAL COST FOR SALES $167,000

Total cost= Total fixed cost + (Average variable cost per unit * Quantity of units produced)   

Average variable cost per unit = Total variable cost / Total output (sales)

= 28390 / 167000

= 0.17

Total cost = 43,600 + (0.17 * 167,000)

= 71990

TOTAL COST FOR SALES $ 178,600

Average variable cost per unit = 30362 / 178,600

= 0.17

Total cost = 43,600 + (0.17 * 178,600)

= 73,962

TOTAL COST FOR SALES $ 190,200

Average variable cost per unit = 32,334 / 190,200

= 0.17

Total cost = 43,600 + (0.17 * 190,200)

= 75,934

TOTAL COST FOR SALES $ 201,800

Average variable cost per unit = 34,306 / 201,800

= 0.17

Total cost = 43600 + (0.17 * 201,800)

= 77,906

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