Relevant Range and Fixed and variable costs Vogel Inc. manufactures memory chips
ID: 2556926 • Letter: R
Question
Relevant Range and Fixed and variable costs Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 134,400 to 218,400 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared: Complete the cost schedule below. When computing the cost per unit, round to two decimal places. Round all other values to the nearest dollar. 134,400 166,400 218,400 Memory chips produced Total costs: Total variable costs $63,168 d. S Total fixed costs 69,888 e. $133,056 f. S Total costs Cost per unit Variable cost per unit a. $ * - Édo id Fixed cost per unit su Total cost per unitExplanation / Answer
1,34,400 Memory Chips Produced
(a) Variable cost per unit = $ 63,168 / 1,34,400 = $ 0.47 per unit
(b) Fixed cost per unit = $ 69,888 / 1,34,400 = $ 0.52 per unit
(c) Total Cost per unit = 0.47 + 0.52 = $ 0.99 per unit
1,66,400 Memory Chips Produced
(d) Change = (166400 – 134400 ) / 134400 * 100 = 23.81%
Total Variable Cost = $ 63168 x 123.81 % = $ 78,208
(e) Total Fixed Cost = $ 69,888
(f) Total Cost = $ 78,208 + $ 69,888 = $ 1,48,096
(g) Variable cost per unit = $ 0.47 per unit
(h) Fixed cost per unit = 0.52 per unit
(i) Total Cost per unit = 0.47 + 0.52 = 0.99 per unit
2,18,400 Memory Chips Produced
(j) Change = (218400 - 134400 ) / 134400 * 100 = 62.50%
Total Variable Cost = $ 63168 x 162.50 % = $ 102648
(k) Total Fixed Cost = $ 69,888
(l) Total Cost = $ 102648 + $ 69,888 = $ 1,72,536
(m) Variable cost per unit = $ 0.47 per unit
(n) Fixed cost per unit = 0.52 per unit
(o) Total Cost per unit = 0.47 + 0.52 = 0.99 per unit