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S T 02 Une Man Schule ADP Swed Help Save & Exi Chec Jordan Trophies makes and sells trophies it distributes to little league
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Answer #1
Number of Trophies 12,000 14,000 16,000 18,000
Total costs incurred
Fixed $64,000 $64,000 $64,000 $64,000
Variable $42,000 $49,000 (14,000*$3.5) $56,000 (16,000*$3.5) $63,000 (18,000*$3.5)
Total costs $106,000 $113,000 $120,000 $127,000
Cost per unit
Fixed $5.33 $4.57 ($64,000/14,000) $4 ($64,000/16,000) $3.56 ($64,000/18,000)
Variable $3.5 $3.5 $3.5 $3.5
Total cost per trophy $8.83 $8.07 $7.5 $7.06
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