Question

Relevant Range and Fixedand Variable Costs

Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 76,800 to 128,000 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:
Components produced76,80096,000128,000Total costs:       Total variable costs . . . . . . . . .$27,648(d)(j)    Total fixed costs . . . . . . . . . . . .30,720(e)(k)    Total costs . . . . . . . . . . . . . . . . .$58,368(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.

Answer 1

Components produced	76,800	96,000	128,000
Total costs:
Total variable costs . . . . . . . . .	$27,648	$34,560	$46,080
Total fixed costs . . . . . . . . . . . .	30,720	30,720	30,720
Total costs . . . . . . . . . . . . . . . . .	$58,368	$65,280	$76,800
Cost per unit:
Variable cost per unit . . . . . . .	$0.36	$0.36	$0.36
Fixed cost per unit . . . . . . . . . .	0.40	0.32	0.24
Total cost per unit . . . . . . . . . .	$0.76	$0.68	$0.60