1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Darina [25.2K]
2 years ago
5

Relevant Range and Fixed and Variable Costs Vogel Inc. manufactures memory chips for electronic toys within a relevant range of

25,000 to 100,000 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:
Memory chips produced ...............45,000 60,000 75,000

Total costs:
Total variable costs ................. $1,350,000 (D) (J)
Total fixed costs .................... 810,000 (E) (K)
Total costs .......................... $2,160,000 (F) (L)
Cost per unit:
Variable cost per unit ............... (A) (G) (M)
Fixed cost per unit .................. (B) (H) (N)
Total cost per unit .................. (C) (I) (O)

Required:
Complete the cost schedule. When computing the cost per unit, round to two decimal places.
Business
1 answer:
lisov135 [29]2 years ago
6 0

Answer:

Results are below.

Explanation:

Relevant range= 25,000 to 100,000

In this range, fixed and variable (unitary) costs remain constant.

<u>To calculate the unitary values, we need to use the following formulas:</u>

Variable cost per unit= Total variable cost / Total number of units

Fixed cost per unit= Total fixed cost / total number of units

<u>Memory chips produced= 45,000</u>

Total variable cost= $1,350,000

Total fixed cost= 810,000

Variable cost per unit= 1,350,000 / 45,000= $30

Fixed cost per unit= 810,000 / 45,000= $18

Total cost per unit= 30 + 18= $48

<u>Memory chips produced= 60,000</u>

Total variable cost= 30*60,000= $1,800,000

Total fixed cost= 810,000

Total cost= $2,610,000

Variable cost per unit= $30

Fixed cost per unit= 810,000 / 60,000= $13.5

Total cost per unit= 30 + 13.5= $43.5

<u>Memory chips produced= 75,000</u>

Total variable cost= 30*75,000= $2,250,000

Total fixed cost= 810,000

Total cost= $3,060,000

Variable cost per unit= $30

Fixed cost per unit= 810,000 / 75,000= $10.8

Total cost per unit= 30 + 10.8= $40.8

You might be interested in
The only way to establish a cause-and-effect relationship between two variables is to conduct a(n) ________. experiment
FromTheMoon [43]
<span>The only way to establish a cause-and-effect relationship between two variables is to conduct an experiment.
First we state a hypothesis and then we make the experiment. The experiment should </span>support, refute, or validate our hypothesis. It is done by making<span> changes in one variable and observing is that might </span>lead to<span> changes in another variable (cause-and-effect).</span>
3 0
2 years ago
The sales and profits of an individual product may not follow the life cycle pattern.A. TrueB. False
Nat2105 [25]

Answer:

A. True

Explanation:

The product life cycle is a term that describes a form of structure or arrangement of sales and profits of a product in a given time.

However, due to volatile marketing conditions, it is TRUE, that the sales and profits of an individual product may or may not follow the life cycle of the general pattern.

Hence, the correct answer in this situations is absolutely TRUE

8 0
3 years ago
A firm follows a(n) ________ when less than 70 percent of its revenues come from a single business and there are few, if any, li
zysi [14]

Answer:

A. Unrelated diversification strategy

Explanation:

A firm follows an unrelated diversification strategy when less than 70 percent of its revenues come from a single business and there are few, if any, linkages among its businesses.

Diversification: This is the art of entering product markets which is different from those in which the firm is currently engaged in. This implies that diversification is when firms direct resources into a new product, that is, producing a different type of product from the existing one.

Diversification is divided into two

1. Related diversification

2. Unrelated diversification

1. Related diversification: This is the process in which the two products involved have a form of commonalities. This result to enjoying economies of scale.

2.Unrelated Diversification: This form of diversification occurs when a firm adds unrelated product lines and penetrates new markets. The new product introduced has to relation or connection with the the previous or existing product.

Unrelated diversification can be accomplished using the following methods:

1. Developing new competences to use new market opportunities.

2. Using the existing basic competences of the company and expanding from existing markets into new ones and starting new lines of production.

3. Penetrating completely new markets. Usually such opportunity can be identified as a result of the main company business.

5 0
3 years ago
Schonhardt Corporation's relevant range of activity is 2,500 units to 5,500 units. When it produces and sells 4,000 units, its a
Vladimir [108]

Answer:

c $11,600

Explanation:

At 4,000 units the unit cost for the fixed manufacturing overhead is 2.90 dollars

We multiply it by 4,000 to know the total amount

$2.90 x 4,000 units = $ 11,600

These will be fixed cost thus, will not change when we produce between the relevant rage of 2,500 to 5,500 units

5 0
3 years ago
What are the top three types of sole proprietorships and percentages?
Slav-nsk [51]
Self-Employed Business Owner. A self-employed business owner is someone who conducts a trade or business with the intent of making a profit. ...
Independent Contractor. ...
Franchise.
5 0
3 years ago
Other questions:
  • What is your best estimate of the elasticity of demand for gasoline? Is it inelastic or elastic? Explain what these terms mean.
    14·1 answer
  • How to find national survey of 2000 adult citizens of a nation found that 23​% dreaded​ valentine's day. the margin of error for
    11·1 answer
  • If monopolistic competitors must expect a process of entry and exit like perfectly competitive firms, Group of answer choices
    5·2 answers
  • Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant ra
    7·1 answer
  • The board of commissioners of the City of Hartmoore adopted a General Fund budget for the year ending June 30, 2017, that includ
    6·1 answer
  • Seaburst Construction Project You are the project manager for the Seaburst construction project. So far the proj- ect is progres
    13·1 answer
  • Belkin co provides medical care and insurance benefits to its retireees in the current year belkin agrees to contribute 5% of th
    6·1 answer
  • If $2,000,000 of 10% bonds are issued at 97, the amount of cash received from the sale is
    7·1 answer
  • Please help I'll give brainliest
    9·1 answer
  • Why would you write an inquiry to a company? (1 point)
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!