Question

Younger Corporation reports that at an activity level of 3,300 units, its total variable cost is...

Younger Corporation reports that at an activity level of 3,300 units, its total variable cost is $172,326 and its total fixed cost is $68,952.

Required:

For the activity level of 3,400 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range. (Round your "Average cost" to 2 decimal places and other answers to the nearest dollar amount.)

(a)

Total variable cost

(b)

Total fixed cost

(c)

Total cost

(d)

Average variable cost

per unit

(e)

Average fixed cost

per unit

(f)

Average total cost

per unit

0 0
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Answer #1

NOTE:Variable cost per unit and total fixed costs do not change with change in units.

Variable cost per unit=$172326/3300=$52.22 per unit

Total cost=Total variable cost+Total fixed cost

a.Total variable cost(52.22*3400) $177,548
b.Total fixed cost $68952
c.Total cost(177548+68952) $246500
d.Average variable cost $52.22 per unit
e.Average fixed cost(68952/3400) $20.28 per unit
f.Average total cost(246500/3400) $72.50 per unit.
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