Relevant Range and Fixed and Variable Costs Vogel Inc, manufac manufacturing cos
ID: 2400149 • Letter: R
Question
Relevant Range and Fixed and Variable Costs Vogel Inc, manufac manufacturing cost schedule has been prepared: ctures memory chips for electronic toys within a relevant range of 45,000 to 75,000 memory chips per year. Within this range, the following partially o Components produced 45,000 60,000 75,000 Total costs: Total variable costs $1,350,000 810,000 $2,160,000 (1 Cost per unit: Fixed cost per unit . Total cost per unit Complete the cost schedule. When computing the cost per unit, round to two decimal places Cost Report omponents produced otal costs: 0) 45,000 60,000 75,000 otal variable costs 1,350,000 (d) 0)Explanation / Answer
Variable cost remain constant in per unit and varies in totality with change in output whereas Fixed cost remain constant in total and varies in per unit .(remain same irrespective of change in output)
componenets produced 45000 60000 75000 Total cost Total variable cost 1350000 60000*30= 1800000 75000*30=2250000 Total fixed cost 810000 810000 810000 Total costs 2160000 2610000 3060000 cost per unit variable cost per unit 1350000/45000=30 30 30 fixed cost per unit 810000/45000= 18 810000/60000=13.5 810000/75000=10.8 Total cost per unit 48 43.5 40.8