Question

Relevant Range and Fixed and Variable Costs

Child Play Inc. manufactures electronic toys within a relevant range of 128,000 to 200,000 toys per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:

Complete the cost schedule below. When computing the cost per unit, round to two decimal places. Round all other values to the nearest dollar.

Toys produced	128,000	160,000	200,000
Total costs:
Total variable costs	$57,600	d. $	j. $
Total fixed costs	64,000	e.	k.
Total costs	$121,600	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. $

Answer 1

Toys produced	128000	160000	200000
Total costs:
Total variable costs	57600	72000	90000
Total fixed costs	64000	64000	64000
Total costs	121600	136000	154000
Cost per unit:
Variable cost per unit	0.45	0.45	0.45
Fixed cost per unit	0.50	0.40	0.32
Total cost per unit	0.95	0.85	0.77
Workings:
Variable cost per unit	0.45	=57600/128000