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2 October, 05:47

Child Play Inc. manufactures electronic toys within a relevant range of 20,000 to 150,000 toys per year. Within this range, the following partially completed manufacturing cost schedule has been prepared: Complete the cost schedule. When computing the cost per unit, round to two decimal places. Toys produced 40,000 80,000 120,000 Total costs: Total variable costs $720,000 d. $ j. $ Total fixed costs 600,000 e. k. Total costs $1,320,000

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  1. 2 October, 05:53
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    Instructions are below.

    Explanation:

    Giving the following information:

    Toys produced 40,000

    Total variable costs = $720,000

    Total fixed costs = $600,000

    Total costs = $1,320,000

    Between the relevant range, the fixed costs remain constant.

    First, we need to calculate the unitary variable cost:

    Unitary variable cost = total variable cost/total number of units

    Unitary variable cost = 720,000/40,000 = $18 per unit.

    For 80,000 units:

    Total variable cost = 18*80,000 = 1,440,000

    Fixed costs = 600,000

    Total cost = $2,040,000

    For 120,000 units:

    Total variable cost = 18*120,000 = 2,160,000

    Fixed costs = 600,000

    Total cost = $2,760,000
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