Answer:
a) Total Cost for EzRecords = $13000
Cost per unit of EzRecords = $162.50
Total Cost for ProOffice = $10000
cost per unit of ProOffice = $200.00
b) Total Cost for EzRecords = $25000
Cost per unit of EzRecords = $125.00
Total Cost for ProOffice = $17500
cost per unit of ProOffice = $175.00
Step-by-step explanation:
a) Total Cost = Fixed Cost + Variable Cost
Fixed Cost = $7500
Variable Cost = cost of making a unit of output × number of units produced.
Variable Cost of EzRecords products = $100 × 80 = $8000
Variable Cost of proOffice products = $150 × 50 = $7500
Fixed Cost for EzRecords = (20/30) × 7500 = $5000
Fixed Cost for ProOffice = (10/30) × 7500 = $2500
Variable cost for EzRecords = $8000
Variable cost for ProOffice = $7500
Total cost for EzRecords = Fixed Cost + Variable Cost = $5000 + $8000 = $13000
Total Cost for ProOffice = $2500 + $7500 = $10000
Cost per unit for EzRecords = (total cost of production)/(total units produced) = 13000/(80) = $162.50
Cost per unit of ProOffice = 10000/50 = $200.00
b) Total Cost = Fixed Cost + Variable Cost
Fixed Cost = $7500
Variable Cost = cost of making a unit of output × number of units produced.
Variable Cost of EzRecords products = $100 × 200 = $20000
Variable Cost of proOffice products = $150 × 100 = $15000
Fixed Cost for EzRecords = (20/30) × 7500 = $5000
Fixed Cost for ProOffice = (10/30) × 7500 = $2500
Variable cost for EzRecords = $20000
Variable cost for ProOffice = $15000
Total cost for EzRecords = Fixed Cost + Variable Cost = $5000 + $20000 = $25000
Total Cost for ProOffice = $2500 + $15000 = $17500
Cost per unit for EzRecords = (total cost of production)/(total units produced) = 25000/(200) = $125.00
Cost per unit of ProOffice = 17500/100 = $175.00
