Answer:
Hannah Ortega
Product lines ProOffice EZRecords
1a. Total costs $10,000 $13,000
b. Cost per unit $200.00 $162.50
2a. Total costs $17,500 $25,000
b. Cost per unit $175.00 $125.00
c) The total costs under the two requirements were different because of the larger units sold in requirement two. These larger units shared the total costs, reducing the cost per unit drastically.
Explanation:
a) Data and Calculations:
Fixed costs for trade show = $7,500
Fixed cost per hour = $250 ($7,500/30)
Product lines ProOffice EZRecords
Cost per package $150 $100
Units sold 50 80
Hours spent 10 hrs 20 hrs
Fixed costs $2,500 $5,000
Variable costs 7,500 8,000
Total costs $10,000 $13,000
Cost per unit $200.00 $162.50
Total cost
Product lines ProOffice EZRecords
Units sold 100 200
Variable costs $15,000 $20,000
Fixed costs 2,500 5,000
Total costs $17,500 $25,000
Cost per unit $175.00 $125.00
c) The total costs under the two requirements were different because of the larger units sold in requirement two. These larger units shared the total costs, reducing the cost per unit drastically.
