Question

Cactus Cookies incurred the following costs this month to manufacture 1,000 jumbo chocolate chip cookies. Chocolate chips $ 57.00 Flour $ 39.00 Butter $ 49.50 Sugar $ 32.00 Other ingredients $ 33.00 Labor wages $ 350.00 Rent on manufacturing space $ 250.00 Utilities (paid at a fixed monthly rate) $ 55.00 Depreciation on kitchen equipment $ 85.00 e. The total variable cost if Cactus Cookies had manufactured 2,000 cookies this month. (Do not round your intermediate calculations.) f. The total fixed cost if Cactus Cookies had manufactured 2,000 cookies this month. g. The variable cost per cookie if Cactus Cookies had manufactured 2,000 cookies this month. (Round your answer to 4 decimal places.) h. The fixed cost per cookie if Cactus Cookies had manufactured 2,000 cookies this month. (Round your answer to 3 decimal place)

Answer 1

Answer
	Total variable cost		1121
	Total fixed cost		390
	Variable cost per cookie		0.5605
	Fixed cost per cookie		0.195
Q:	Total variable cost for 2000 cookies
	chocolate chips		57
	flour		39
	butter		49.5
	sugar		32
	other ingredients		33
	labour wages		350
	Total variable cost for 1000 cookie		560.500
	variable cost per cookie                   =		0.5605
	variable cost for 2000                         =		1121
Q:	Total fixed cost for 2000 cookies
	Rent on manufacturing space		250
	Utilities (Paid at a fixed mothly rate)		55
	Depreciation on kitchen equipment		85
	Total fixed cost		390
	fixed cost is always same, even if 1000 or 2000
Q:	Variable cost per cookie (for 2000 cookies)
	variable cost/no of cookies                     =		0.5605
Q:	Fixed cost per cookie (for 2000 cookies)
	fixed cost/no of cookies                          =		0.195