Answer:
Number of Trophies 6,000 8,000 10,000 12,000
Total costs incurred
Fixed 76,000. 76,000 76,000 76,000
Variable 42,000 56,000 70,000 84,000
Total costs 118,000 132,000 146,000 160,000
Cost per unit 12.67 9.50 7.60 6.33
Fixed Variable 7.00 7.00 7.00 7.00
Total cost per trophy 19.67 16.50 14.60 13.33
Explanation:
Calculation to Complete the preceding table by filling in the missing amounts for the levels of activity shown in the first row of the table
Number of Trophies 6,000 8,000 10,000 12,000
Total costs incurred
Fixed 76,000 76,000 76,000 76,000
Variable 42,000 56,000 70,000 84,000
Total costs 118,000 132,000 146,000 160,000
Cost per unit 12.67 9.50 7.60 6.33
Fixed Variable 7.00 7.00 7.00 7.00
Total cost per trophy 19.67 16.50 14.60 13.33
Fixed Cost =76,000
Variable cost per unit =42,000/6,000 units=7 per units
Variable cost per unit =8,000 units×$7 =$56,000
Variable cost per unit=10,000 units×$7=$70,000
Variable cost per unit=12,000 units× $7=$84,000
Total Cost =Fixed cost + Variable cost
Cost per unit=Fixed cost/Number of units
8,000 units=76,000/8,000=$9.50
10,000 units=76,000/10,000=$7.60
12,000 units=76,000/12,000=$6.33
Fixed Variable=42,000/6,000 units=7 per units
Total cost per trophy =Cost per units + Fixed variable
