Question

Relevant Range and Fixed and Variable Costs

Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 61,600 to 100,800 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:

Components produced	61,600	79,200	100,800
Total costs:
Total variable costs . . . . . . . . .	$19,712	(d)	(j)
Total fixed costs . . . . . . . . . . . .	22,176	(e)	(k)
Total costs . . . . . . . . . . . . . . . . .	$41,888	(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)

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

Cost Report
Components produced		61,600		79,200		100,800
Total costs:
Total variable costs		$19,712	(d)	$	(j)	$
Total fixed costs		22,176	(e)		(k)
Total costs		$41,888	(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

* Variable cost per unit is constant.

* Total fixed cost is constant.

Cost Report
Components produced		61,600		79,200		100,800
Total costs:
Total variable costs		$19,712	(d)	$25,344 ($0.32*79,200)	(j)	$32,256 ($0.32*100,800)
Total fixed costs		$22,176	(e)	$22,176	(k)	$22,176
Total costs		$41,888	(f)	$47,520	(l)	$54,432
Cost per Unit
Variable cost per unit	(a)	$0.32 ($19,712/61,600)	(g)	$0.32	(m)	$0.32
Fixed cost per unit	(b)	$0.36 ($22,176/61,600)	(h)	$0.28 ($22,176/79,200)	(n)	$0.22 ($22,176/100,800)
Total cost per unit	(c)	$0.68	(i)	$0.6	(o)	$0.54