Question

the n.swrauestions Ata sales volume of 40.000 t, Lonnie Companys total fixed costs ore 40,000 ad variable custs are 50.000 The relevant range is 30,000 o 50,000 t Lonne were to sell 42,.000units, thec ttal pcted cost would be A) $105,000 )5100.000 CI 5103.000 )$102.000 2 If Lonnie were to sell 50,000 units, the total cxpected cost per unit would be )$2.20 B) 52.30 C) 52.50 )52.00 3. An analysis of a particular mixed cost indicates it will be an average of S0.65 per hour at an activity level of 18,000 hours and S11,700 in total at an activity level of 20,000 hours Assuming that this activity is within the relevant range, what is this cost expected to total at an activity level of 16,000 hours? A) 59 160 B) $10.400 c) si 1,250 D) S11,700 4. Shipping costs at Fisheries Inc are a mixed cost with variable and fixed cost components Records indicate the company shipped 6.000 tons of halibut for $5,000 in March and 9,000 tons for $7.400 in April. Assuming that this activity is within the relevant range the expected shipping cost for shipping 7,800 tons would be A) 56,240, B) $9,750 C) $6,440 D) $6,200

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
Variable Cost per Unit	$60,000/40000 Units	$                 1.50	per Unit
Part -1	at 42000 Units
Variable Cost	$1.50 per Unit*42000	$             63,000
Fixed Cost	will remain same on 30000-50000 units	$             40,000
Total Cost		$           103,000	C.
Part -2	at 50000 Units
Variable Cost	$1.50 per Unit*50000	$             75,000
Fixed Cost	will remain same on 30000-50000 units	$             40,000
Total Cost		$           115,000
Total Cost per Unit	$115,000/50000 Units	$                 2.30	B.
Part -3
It will be $ 11,700 (D)
Since at 18000 and 20000, total cost is same 11700 meaning all cost is Fixed which will remain same at 16000 Hours also
Part -4	Month	Tone	Cost
	March	6,000	$    5,000
	April	9,000	$    7,400
	Difference	3,000	$    2,400
	Per Unit Cost (Variable)	2400/3000	$      0.80	Per Unit
	Fixed Cost:
	Total Cost (at any activity level)	$               5,000
	Less:Variable Cost (6000*0.80)	$               4,800
	Fixed Cost	$                  200
	Hence cost at 7800 Tons:
	Variable Cost 7800*0.8	$               6,240
	Fixed Cost	$                  200
	Total Cost	$               6,440	C