Answer:
Variable cost per unit is $9 and the fixed cost is $29,500
Explanation:
The computation of the variable and fixed components are shown below:
For variable cost per unit, it equals to
= (High cost - low cost) ÷ (High associated cost drivers - low associated cost drivers)
= ($92,500 - $60,100) ÷ (7,000 - 3,400)
= $32,400 ÷ 3,600
= $9 per unit
Now the fixed component equal to
= (High cost) - (variable cost per unit × high associated cost drivers )
= $92,500- ($9 per unit × 7,000)
= $92,500- $63,000
= $29,500
<span>The department chair issued this directive because several computers and keyboards in the computer labs were recently damaged by spilled drinks and food. this is a rule issued by the department chair. </span>
Explanation:
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