Question

Relevant Range and Fixed and Variable Costs

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

Components 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)

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		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

Components produced	Working	128000	Working	160000	Working	200000
Total costs:
Total variable cost		57600	160000*0.45	72000	200000*0.45	90000
Total fixed costs		64000	780*191.5	64000		64000
Total costs		121600	72000+64000	136000	90000+64000	154000
Cost per unit:
Variable cost per unit	57600/128000	0.45	72000/160000	0.45	90000/200000	0.45
Fixed cost per unit	64000/128000	0.50	64000/160000	0.40	64000/200000	0.32
total cost per unit	121600/128000	0.95	136000/160000	0.85	154000/200000	0.77