Question

Cactus Cookies incurred the following costs this month to manufacture 1,000 jumbo chocolate chip cookies Chocolate chips Flour Butter Sugar Other ingredients Labor wages Rent on manufacturing space Utilities (paid at a fixed monthly rate) Depreciation on kitchen equipment $58.00 $ 30.00 $61.50 $ 30.00 $ 35.00 S 300.00 S 300.00 $ 54.00 $ 82.00 Calculate each of the following a. The total variable cost this month. (Round your answer to 2 decimal places) Total Variable Cost b. The total fixed cost this month Total Fixed Cost c. The variable cost per cookie this month. (Round your answer to 4 decimat places) riable Cost

Answer 1

The total variable cost this month = chocochip + flour + butter + sugar + other ingredients = $58+ 30 +61.5 + 30 + 35 = $ 214.5

The total fixed cost = rent + utilities + depreciation + labour

= $300 + $54 +$82 + $300

= $736

The variable cost per cookie = 214.5/1000

= $ .2145

* labour wages has been assumed fixed cost.