Corio
Corporation reports that at an activity level of 4,800 units, its total
variable cost is $328,224 and its total fixed cost is $128,919.
|
|
Required:
|
For
the activity level of 4,900 units, compute: (a) the total variable
cost; (b) the total fixed cost; (c) the total cost; (d) the average
variable cost per unit; (e) the average fixed cost per unit; and (f) the
average total cost per unit. Assume that this activity level is within
the relevant range. (Round your
"Average cost" to 2 decimal places and final answers to the nearest
dollar amount. Omit the "$" sign in your response.)
|
Explanation: Variable cost = $328,224 ÷ 4,800 units = $68.38 per unit
| | |
Activity level | $ | 4,900 |
Total cost: | | |
Variable cost (a) [4,900 units × $68.38 per unit] | | 335,062 |
Fixed cost (b) | | 128,919 |
|
|
|
Total (c) | $ | 463,981 |
|
|
|
Cost per unit: | | |
Variable cost (d) | | 68.38 |
Fixed cost (e) [$128,919 ÷ 4,900 units] | | 26.31 |
|
|
|
Total (f) | | 94.69 |
|
| |
No comments:
Post a Comment