Question

Sebastian Muffler, Inc. operates an automobile service facility. The table below shows the cost incurred during a month when 400 mufflers were replaced.

	Number of Muffler Replacements
	300		400				500
Total costs:
Fixed costs	A		$	8,700			C
Variable costs	B			4,000			D
Total costs	E		$	12,700			F
Cost per muffler replacement:
Fixed cost	G			H			I
Variable cost	J			K			L
Total cost per muffler replacement	M			N			O

Required:

Fill in the missing amounts, labeled A through O, in the table above. (Round your answer to 2 decimal places.)

Sebastian Muffler, Inc. operates an automobile service facility. The table below shows the cost incurred during a month when 400 mufflers were replaced.

	Number of Muffler Replacements
	300		400				500
Total costs:
Fixed costs	A		$	8,700			C
Variable costs	B			4,000			D
Total costs	E		$	12,700			F
Cost per muffler replacement:
Fixed cost	G			H			I
Variable cost	J			K			L
Total cost per muffler replacement	M			N			O

Required:

Fill in the missing amounts, labeled A through O, in the table above. (Round your answer to 2 decimal places.)

Answer 1

		Number of Muffler Replacements
		300	400	500
	Total Costs:
	Fixed Costs	8700	8700	8700
	Variable Costs	3000	4000	5000
	Total Costs	11700	12700	13700
	Cost Per Muffler Replacement
	Fixed Cost	29.00	21.75	17.40
	Variable Cost	10.00	10.00	10.00
	Total Costs	39.00	31.75	27.40
	For A & C:
	Total Fixed Cost remains the same at any level of activity.
	For B & D & J, K & L:
	Total Variable Cost	4000
	Total Activity	400
	Variable Cost PU	10.00
		B	D
	Activity Level	300	500
	Total Variable Cost	3000	5000	(Activity*10)
	For E & F:
	Total Cost=Fixed Costs+Variable Costs
	For G, H & I:
		G	H	I
	Total Fixed Cost	8700	8700	8700
	Activity Level	300	400	500
	Fixed Cost PU	29.00	21.75	17.40
	For M & N & O:
	Total Cost=Variable Cost PU+Fixed Cost PU