Question

Compute the total of variable cost per unit and total fixed cost.

Variable Cost per unit Fixed Costs: Utility $12,400 3.00 Utility 10.50 Rent Direct Materials 36,000 14,000 $ 62,400 Direct Labor 4.50 Depreciation Total 18.00 Total USC has determined that the cost line for Utility Cost is 3x 12,400 y Prepare a C-V-P graph for USC. Use zero units and 7,000 units. Compute sales and total cost at those points Units 7,000 0 Sales Total Cost Include your graph here. Prepare a profit graph for USC. Use zero units and 7,000 units. Units 0 7,000 Profit Include your graph here.

Answer 1

	Zero Units	7000 units
Variable Costs:
Utility	Nil	21000
DM	Nil	73500
DL	Nil	31500
Total	Nil	126000
Rent	36000	36000
Depn	14000	14000
Utility	12500	12500
Total Costs	62500	188500