Younger Corporation reports that at an activity level of 3,400 units, its total

Question

Younger Corporation reports that at an activity level of 3,400 units, its total variable cost is $180,982 and its total fixed cost is $74,515. Required: For the activity level of 3,500 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 fixe cost per unit; and (1) the average total cost per unit. Assume that this activity level is within the relevant range. (Round your "Average cost" to 2 decimal places and other answers to the nearest dollar amount.) (a) Total variable cost (b) Total fixed cost (c) Total cost (d) Average variable cost (e) Average fixed cost (1 Average total cost per unit per unit per unit 26

Explanation / Answer

a Total variable cost 186305 =180982/3400*3500 b Total fixed cost 74515 c Total cost 260820 =186305+74515 d Average variable cost 53.23 =186305/3500 e Average fixed cost 21.29 =74515/3500 f Average total cost 74.52 =53.23+21.29

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