L Beiavior Alisha Incorporated manufactures medical stents for use in heart bypa

Question

L Beiavior Alisha Incorporated manufactures medical stents for use in heart bypass surgery. Based on past experience, Alisha has found that its total maintenance costs can be represented by the following formula: Maintenance Cost $238,000 + $17.30X where X-Number of Heart Stents. Last year, Alisha produced 80,000 stents. Actual maintenance costs for the year were as expected. Required: 1. What is the total maintenance cost incurred by Alisha last year? Round your answer to the nearest dollar. 2. What is the total fixed maintenance cost incurred by Alisha last year? Round your answer to the nearest dollar. 3. What is the total variable maintenance cost incurred by Alisha last year? Round your answer to the nearest dollar. 4. What is the maintenance cost per unit produced? Round your answer two decimal places. per unit 5. What is the fixed maintenance cost per unit? Round your answer two decimal places per unit 6. What is the variable maintenance cost per unit? Round your answer two decimal places. per unit 35 PM 18/201

Explanation / Answer

1) Total Maintenance Cost =$238000+(17.3*80000)

=$238000+1384000

=$1622000

2) Fixed cost = $238000

3) Variable cost =$17.3*80000

=$1384000

4) Maintenance cost per Unit =$1622000/80000

=$20.28

5) Fixed cost per unit = 238000/80000

=$2.98

6) Variable cost per unit = $ 17.3

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