Question

Relevant Range and Fixedand Variable Costs

Answer 1

Answer:

Results are below.

Explanation:

Giving the following information:

Components produced 76,800 96,000 128,000

Total costs:

Total variable costs . . . . . . . . .$27,648

Total fixed costs . . . . . . . . . . . .30,720

Total costs . . . . . . . . . . . . . . . . .$58,368

To calculate the unitary variable costs and unitary fixed costs, we need to use the following formulas:

unitary variable cost= total variable cost/number of units

unitary fixed cost= total fixed cost/number of units

For 76,800:

unitary variable cost= 27,648/76,800= $0.36

unitary fixed cost= 30,720/76,800= $0.4

Total unitary cost= 58,368/76,800= $0.76

For 96,000:

unitary variable cost= 27,648/96,000= $0.29

unitary fixed cost= 30,720/96,000= $0.32

Total unitary cost= 58,368/96,000= $0.61

For 128,000:

unitary variable cost= 27,648/128,000= $0.22

unitary fixed cost= 30,720/128,000= $0.24

Total unitary cost= 58,368/128,000= $0.46