Question

The company has manufacturing costs which consist only of fixed and variable costs (no step costs,...

The company has manufacturing costs which consist only of fixed and variable costs (no step costs, no non linear costs). When they produced 206093 units their fixed manufacturing costs were found to be 849,237, while total manufacturing costs per unit were 13. How much would their costs be expected to be for 206,581 units?

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Answer #1
Total Manufacturing Cost $ 2,682,838.46
Total Manufacturing Cost per unit [2682838.46/206851] $                      13

Working:

Total Manufacturing Costs [206093*13] $ 2,678,507.00
Less: TotalFixed Costs $   (849,237.00)
Total Variable Costs $ 1,829,270.00
Variable cost per Unit [1829270/206093] $                   8.88
Total Variable Costs [206851*8.88] $ 1,833,601.46
Total fixed costs $      849,237.00
Total Manufacturing Cost $ 2,682,838.46
Total Manufacturing Cost per unit [2682838.46/206851] $                      13
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