Fixed Costs; Graphical and Tabular Analyses
High tide Upholstery Company manufactures a special fabric used to upholster the seats in power boats.
The company's annual fixed production cost is 5100,000.
Required:
1. Draw a graph of the company's fixed production cost showing the total cost at the following production levels of upholstery fabric: 10,000 yards, 20,000 yards, 30,000 yards, and 40,000 yards.
2. Prepare a table that shows the unit cost and the total cost for the firm's fixed production costs at the following production levels: 1 yard. 10 yards, 10.000 yards, and 40,000 yards.
3. Prepare a graph that shows the unit cost for the company's fixed production cost at the following production levels: 10,000 yards, 20,000 yards, 30,000 yards, and 40,000 yards.
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