17) | Units Produced | Total Cost | ||
Highest | 6000 | $ 120,000.00 | ||
Lowest | 2000 | $ 80,000.00 | ||
Difference | 4000 | $ 40,000.00 | ||
Variable cost per unit = $40,000/4000 | $ 10.00 | per unit | ||
18) | ||||
Fixed Cost : $120,000 - (6000 x $10) | $ 60,000.00 | |||
Total Cost (Y) = $60,000 + $10 X | ||||
19) | ||||
Total predicted Cost = $60,000 + ($10 x 4880 units) | $ 108,800.00 | |||
20) | ||||
# of Study Guides | 3000 | 4000 | 5000 | 6000 |
Total Costs Incurred | ||||
Fixed = Remain fixed for all units | $ 48,000.00 | $ 48,000.00 | $ 48,000.00 | $ 48,000.00 |
Variable = Units x Variable cost per unit | $ 36,000.00 | $ 48,000.00 | $ 60,000.00 | $ 72,000.00 |
Total Costs | $ 84,000.00 | $ 96,000.00 | $ 108,000.00 | $ 120,000.00 |
Cost Per Unit: | ||||
Fixed = Total fixed cost/ units | $ 16.00 | $ 12.00 | $ 9.60 | $ 8.00 |
Variable = cost per unit remains fixed for all units | $ 12.00 | $ 12.00 | $ 12.00 | $ 12.00 |
Total Cost per unit | $ 28.00 | $ 24.00 | $ 21.60 | $ 20.00 |
For 5020 units Produced | ||||
Total Cost = $48000 + (5020 x $12) | $ 108,240.00 |
Use the following information to answer question 17 through 19: 17. Doherty & Puthoff, Inc. produces...
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