Third World Gamer Inc. manufactures components for computer games within a relev

Question

Third World Gamer Inc. manufactures components for computer games within a relevant range of 128,000 to 200,000 disks per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:

Complete the cost schedule below. Round costs per unit to the nearest cent.

Components produced 128,000 160,000   200,000     Total costs: Total variable costs $57,600 (d)       (j)           Total fixed costs 64,000 (e)       (k)           Total costs $121,600 (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

Cost Schedule Components produced 1,28,000 1,60,000 2,00,000 Total costs: Total variable costs 57600 72000 90000 Total fixed costs 64,000 64,000 64,000 Total costs 121600 1,36,000 1,54,000 Cost per unit: Variable cost per unit 0.45 0.45 0.45 Fixed cost per unit 0.5 0.4 0.32 Total cost per unit 0.95 0.85 0.77

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