Question

Walton Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between 4,000 and 10,000 trophies per year. The following cost data apply to various activity levels:

Required

Complete the preceding table by filling in the missing amounts for the levels of activity shown in the first row of the table. (Round "Cost per unit" answers to 2 decimal places.)

	Number of Trophies 4,000 6,000 8,000 10,000 Total costs incurred Fixed $46,000 Variable 42,000 Total costs $88,000 $0 $0 $0 Cost per unit Fixed $11.50 Variable 10.50 Total cost per trophy $22.00 $0.00 $0.00 $0.00v

Answer 1

Number of Trophies	4,000	6,000	8,000	10,000
Total costs incurred
Fixed	$46,000	$46,000	$46,000	$46,000
Variable	42,000	63,000	84,000	105,000
Total costs	$88,000	$109,000	$130,000	$151,000
Cost per unit
Fixed	$11.50	$7.67	$5.75	$4.60
Variable	10.5	10.5	10.5	10.5
Total cost per trophy	$22.00	$18.17	$16.25	$15.10

Formula used :

Variable cost per unit = Total variable cost / Number of units                       

Total variable cost = Variable cost per unit x Number of units      

Fixed cost per unit = Total fixed cost / Number of units   

Total fixed cost does not change within the relevant range of output.      

Kindly comment if you need further assistance.

Thanks‼!