Fortress Inc. manufactures pistons for custom motorcycles within a relevant rang

Question

Fortress Inc. manufactures pistons for custom motorcycles within a relevant range of 300,000 to 375,000 pistons per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:


Components Produced 300,000 360,000 375,000
Total Costs
Total Variable costs 75,000 (d) (j)
Total fixed costs 90,000 (e) (k)
Total Costs 165,000 (f) (l)

Cost Per Unit
Variable cost per unit (a) (g) (m)
Fixed cost per unit (b) (h) (n)
Total cost per unit (c) (i) (o)

Complete the cost schedule, identifying each cost by the appropriate letter (a) through (o).

Explanation / Answer

300,000 360,000 375,000 total var. costs 75,000 90000 93750 total fixed cost 90,000 90,000 90,000 total costs 165,000 180000 183750 cost per unit var. cost per unit 0.25 0.25 0.25 fixed cost per unit 0.30 0.25 0.24 total cost per unit 0.55 0.50 0.49

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