Varina Trophies makes and sells trophies it distributes to little league ballpla

Question

Varina Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between 10,000 and 16,000 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 10,000 12,000 14,000 16,000 Total costs incurred Fixed $66,000 $66,000 $66,000 $66,000 Variable 42,000 52,500 63,000 73,500 Total costs $108,000 $118,500 $129,000 $139,500 Cost per unit Fixed $6.60 $8.17 $8.55 $8.63 Variable 4.20 4.20 4.20 4.20 Total cost per trophy $10.80 $12.37 $12.75 $12.83

Explanation / Answer

PARTICULLAR 10000 UNITS 12000 UNITS 14000 UNITS 16000 UNITS AMOUNT $ AMOUNT $ AMOUNT $ AMOUNT $ TOTAL FIXED COST 66000 66000 66000 66000 VARIABLE COST 42000 52500 63000 73500 TOTAL COST (A) 108000 118500 129000 139500 NUMBER OF UNITS (B) 10000 12000 14000 16000 COST PER UNIT (A / B) 10.80 9.87 9.21 8.72

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