Answer:
80,000 units 100,000 units 120,000 units
Variable cost $1,520,000 $1,900,000 $2,280,000
Total costs $1,820,000 $2,200,000 $2,580,000
Explanation:
Activity Level
Finished Units 80,000 units 100,000 units 120,000 units
Variable Costs:
Direct Materials(Units × $5) $400,000 $500,000 $600,000
Direct Labor(Units × $6) $480,000 $600,000 $720,000
Overhead (Units × $8) $640,000 $800,000 $960,000
Total Variable Costs $1,520,000 $1,900,000 $2,280,000
Fixed Costs
Depreciation $200,000 $200,000 $200,000
Supervision $100,000 $100,000 $100,000
Total Fixed Costs $300,000 $300,000 $300,000
So, Total costs $1,820,000 $2,200,000 $2,580,000
( Variable + Fixed)
