Scherzer Inc. manufactures laser printers within a relevant range of production
ID: 2381950 • Letter: S
Question
Scherzer Inc. manufactures laser printers within a relevant range of production of 60,000 to 120,000 printers per year. The following partially completed manufacturing cost schedule has been prepared:
Number of Printers Produced
70,000
90,000
100,000
Total costs:
Total variable costs
$350,000
(d)
(j)
Total fixed costs
700,000
(e)
(k)
Total costs
$1,050,000
(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)
Provide the appropriate answer for each of the following (you do not need to provide the totals):
d) j)
e) k)
f) n/a l) n/a
a) g) m)
b) h) n)
c) n/a i) n/a o) n/a
Number of Printers Produced
70,000
90,000
100,000
Total costs:
Total variable costs
$350,000
(d)
(j)
Total fixed costs
700,000
(e)
(k)
Total costs
$1,050,000
(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)
Explanation / Answer
(d) $450,000 ($350,000/ 70,000 * 90,000)
(j) $500,000($350,000/ 70,000 * 100,000)
(e) $700,000
(k) $700,000
(a) $5 ($350,000/ 70,000)
(g) $5
(m) $5
(b) $10($700,000/70,000)
(h) $7.8($700,000 /90,000)
(n) $7($700,000/100,000)
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