In: Accounting
1. Quiz Company incurred costs of $225,000 to produce 50,000 units. The total cost included fixed costs of $100,000.
Determine the total cost to produce 80,000 units.
Note: Give your answer using dollar signs and commas but no decimal points (cents).
2. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Determine the total cost to produce 10,000 units.
3. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Determine the variable cost to produce 10,000 units.
4. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Determine the fixed cost to produce 10,000 units.
5. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units. Total cost will
a. |
Increase |
|
b. |
Decrease |
|
c. |
Remain unchanged |
|
d. |
(This is an incorrect answer because Blackboard requires a minimum of four choices.) |
6. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units. Fixed cost will
a. |
Increase |
|
b. |
Decrease |
|
c. |
Remain unchanged |
|
d. |
(This is an incorrect answer because Blackboard requires a minimum of four choices.) |
7. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units. Variable cost will
a. |
Increase |
|
b. |
Decrease |
|
c. |
Remain unchanged |
|
d. |
(This is an incorrect answer because Blackboard requires a minimum of four choices.) |
8. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units. Variable cost per unit will
a. |
Increase |
|
b. |
Decrease |
|
c. |
Remain unchanged |
|
d. |
(This is an incorrect answer because Blackboard requires a minimum of four choices.) |
9. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units. Fixed cost per unit will
a. |
Increase |
|
b. |
Decrease |
|
c. |
Remain unchanged |
|
d. |
(This is an incorrect answer because Blackboard requires a minimum of four choices.) |
10. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units. Total cost per unit will
a. |
Increase |
|
b. |
Decrease |
|
c. |
Remain unchanged |
|
d. |
(This is an incorrect answer because Blackboard requires a minimum of four choices.) |
1)Quiz Company incurred costs of $225,000 to produce 50,000 units. The total cost included fixed costs of $100,000
Now we have to calculate variable cost per unit first. Formula is Total Cost/Total units .
It will be $225000/50000 units = $4.5/unit
So variable cost for 80000 units will be 80000 units* $4.5/unit
It wil be $360000
Fixed cost will not change with change in units . So it will be $100000
So Total cost to produce 80000 unit will be $360000+$100000 = $460000
2) Cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
So total cost to produce 10000 units will be :
Cost = $5.5 * 10000 units + $25000 = $80000
So total cost to produce 10000 units = $80000
3) Cost formula for the monthly production of its product :
Cost = $5.50 x Number of units + $25,000
Total Variable cost to produce 10000 units wil be Variable cost per unit * Total Units
It will be $5.5/unit * 10000 = $55000
Total Variable cost to produce 10000 units = $55000
4) Cost formula for the monthly production of its product :
Cost = $5.50 x Number of units + $25,000
Fixed cost to produce 10,000 units will be $25000. Total Fixed cost will not change with change in units.
5) Cost formula for the monthly production of its product :
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units
So total cost for 10000 units is $5.5/unit *10000 units + $25000 = $80000
Total cost for 15000 units is $5.5/unit *15000 units + $25000 = $107500
So total cost will Increase when production increses from 10000 units to 15000 units
So the answer is Option ' a '
6) Cost formula for the monthly production of its product :
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units.
Total Fixed cost will not change with change in units.
So the answer is option 'c'
7) Cost formula for the monthly production of its product:
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units.
Variable cost for 10000 units = 10000 unit *$5.5/unit = $55000
Variable cost for 15000 units = 15000 unit *$5.5/unit = $82500
Variable cost will increase when production increase from 10000 units to 25000 units
So the answer is option 'a'
8) Cost formula for the monthly production of its product :
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units
Variable cost for 10000 units = 10000 unit *$5.5/unit = $55000. So per unit cost will be $55000/10000 units = $5.5/unit
Variable cost for 15000 units = 15000 unit *$5.5/unit = $82500. So per unit cost will be $82500/15000 units = $5.5/unit
So Variable cost per unit remain unchanged when production increase from 10000 untis to 15000 units
So the answer is option 'c'
9) Cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units.
Fixed cost for 10000 units =$25000 . So per unit fixed csost will be $25000/10000 units = $2.5/unit
Fixed cost for 15000 units = $25000. So per units cost will be $25000/15000 units = $1.67/unit
So Fixed cost per unit decreases when production increase from 10000 units to 15000 units.
So the answer is option 'b'
10) Cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units.
Total Cost = Variable cost + Fixed cost
Total Cost for 10000 units ($5.5/unit * 10000 units ) + $25000 = $80000. So total cost per unit will be $80000/10000 units = $8/unit
Total Cost for 15000 units ($5.5/unit * 15000 units ) + $25000 = $107500. So total cost per unit will be $107500/15000 units = $7.17/unit
So total cost per unit will decrease when production increase from 10000 units to 15000 units
So our answer is option 'b'