Answer:
Alisha Incorporated
1. Total maintenance cost incurred by Alisha last year? Round your answer to nearest dollar:
= $4,875,000
2. Total fixed maintenance cost incurred by Alisha last year? Round your answer to nearest dollar:
= $1,750,000
3. Total variable maintenance cost incurred by Alisha last year? Round your answer to nearest dollar:
= $3,125,000
4. Maintenance cost per unit produced? Round your answer two decimal places. $ per unit
= $195
5. Fixed maintenance cost per unit? Round your answer two decimal places. $ per unit
= $70
6. Variable maintenance cost per unit? Round your answer two decimal places. $ per unit
= $125
Explanation:
a) Data and Calculations:
Total maintenance costs = $1,750,000 + $125X,
where X = Number of Heart Stents
Production = 25,000 stents last year.
Total maintenance costs = $1,750,000 + $125 * 25,000
= $1,750,000 + $3,125,000
= $4,875,000
Total maintenance cost per unit = $4,875,000/25,000 = $195
Fixed costs per unit = $70
