Question

Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 88,400 to 142,800 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:

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

Memory chips produced	88,400	109,200	142,800
Total costs:
Total variable costs	$33,592	d. $	j. $
Total fixed costs	37,128	e.	k.
Total costs	$70,720	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

		Memory chips produced	88,400	1,09,200	1,42,800
		Total costs:
	A	Total variable costs	33,592	41,496	54,264
	B	Total fixed costs	37,128	37,128	37,128
		Total costs(A+B)	70,720	78,624	91,392
		Cost per unit
	A	Variable cost per unit	0.38	0.38	0.38
	B	Fixed cost per unit	0.42	0.340	0.26
		Total cost per unit(A+B)	0.80	0.72	0.64
	a	Total variable costs	33,592	A
		Activity Level	88,400	B
		Per Unit Variable Cost	0.380	A/B
	b	Total fixed costs	37,128	A
		Activity Level	88,400	B
		Per Unit Fixed Cost	0.42	A/B
	d	Per Unit Variable Cost	0.38	A
		Activity Level	1,09,200	B
		Variable Cost	41496	A*B
	e & k	Fixed Cost is equal irrelevant of Activity Level
	j	Per Unit Variable Cost	0.38	A
		Activity Level	1,42,800	B
		Variable Cost	54264	A*B
	h	Total fixed costs	37128	A
		Activity Level	1,09,200	B
		Per Unit Fixed Cost	0.340	A/B
	n	Total fixed costs	37128
		Activity Level	1,42,800
		Per Unit Fixed Cost	0.26