Thank you! Please complete A-H and show steps. Cactus Cookies incurred the follo

Question

Thank you! Please complete A-H and show steps.

Cactus Cookies incurred the following costs this month to manufacture 1,000 jumbo chocolate chip cookies. Calculate each of the following: The total variable cost this month The total fixed cost this month The variable cost per cookie this month The fixed cost per cookie this month. The total variable cost if Cactus Cookies had manufactured 2,000 cookies this month The total fixed cost if Cactus Cookies had manufactured 2,000 cookies this month The variable cost per cookie if Cactus Cookies had manufactured 2,000 cookies this month The fixed cost per cookie if Cactus Cookies had manufactured 2,000 cookies this month

Explanation / Answer

a. Total Variable Cost this month=

Chocolate Chips $75

Flour $22

Butter $48.50

Sugar $ 30

Other Ingredients $27

Labor Wages $300

Total Variable cost this month = $502.5

b. Total Fixed Cost this month =

Rent on manufacturing space $250

Utilities $52

Depreciation $ 88

Total Fixed Cost = $ 390

c)Variable Cost per cookie this month:

    Total variable cost=$502.50

    Total number of cookies-1000

   So,Variable cost per cookie=$(502.50/1000)

                                                =$0.5022

d. Fixed Cost per cookie this month:

    Total fixed cost=$390

    Total number of cookies-1000

   So,Fixed cost per cookie=$(390/1000)

                                                =$0.39

e. Total variable cost for 2000 cookies

Variable Cost/cookie =$0.5025

So total variable cost for 2000 cookies =$(2000*0.5025)

                                                                 =$1005

f.Total fixed cost for 2000 cookies would be the same irrespective of the number of cookies manufactured.

This is because fixed cost is incurred irrespective of the number of units produced.

g.Variable cost per cookie for manufacture of 2000 cookies

Variable cost for 2000 cookies=$1005 (refer e)

So,variable cost/cookie =$(1005/2000)

                                       =$0.5025

h.The fixed cost as explained earlier remains same i.e. $0.39

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