At an activity level of 7,600 units, Haas Corporation\'s total variable cost is

Question

At an activity level of 7,600 units, Haas Corporation's total variable cost is $463,600 and its total fixed cost is $364,884.

Required:

For the activity level of 7,800 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range. (Do not round your intermediate calculations. Round your average values to two decimal places.)

At an activity level of 7,600 units, Haas Corporation's total variable cost is $463,600 and its total fixed cost is $364,884.

Required:

For the activity level of 7,800 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range. (Do not round your intermediate calculations. Round your average values to two decimal places.)

Explanation / Answer

a) $475,800 (7,800 x $61*)

* cost per unit computed by dividing variable cost at 7,600 units ($463,600) by total units (7,600).

b) $364,884 (cost is not affected by volume)

c) $840,684 ( a+b )

d) $61 ($475,800/7,800)

e) $46.78 ($364,884/7,800)

f) $107.78 ($840,684/7,800 or d+e)

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