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Barrack Inc. manufactures laser printers within a relevant range of production o

ID: 2354968 • Letter: B

Question

Barrack Inc. manufactures laser printers within a relevant range of production of 50,000 to 70,000 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 630,000 (e) (k) Total costs $980,000 (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) Complete the preceding cost schedule, identifying each cost by the appropriate letter (a) through (o).

Explanation / Answer

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BARRACK INC.

PARTICULARS

NUMBER OF PRINTERS PRODUCED

70,000

90,000

100,000

TOTAL COSTS:

      Total variable costs

$                    350,000

$                    450,000

d

$                   500,000

j

      Total fixed costs

$                    630,000

$                    630,000

e

$                   630,000

k

TOTAL COSTS

$            980,000

$         1,080,000

f

$         1,130,000

l

COST PER UNIT:

      Variable cost per unit

$                                 5

a

$                                 5

g

$                                5

m

       Fixed cost per unit

$                                 9

b

$                                 7

h

$                                6

n

TOTAL COST PER UNIT

$                     14

c

$                     12

i

$                     11

o

Paste it into word for watching the clear answer.

BARRACK INC.

PARTICULARS

NUMBER OF PRINTERS PRODUCED

70,000

90,000

100,000

TOTAL COSTS:

      Total variable costs

$                    350,000

$                    450,000

d

$                   500,000

j

      Total fixed costs

$                    630,000

$                    630,000

e

$                   630,000

k

TOTAL COSTS

$            980,000

$         1,080,000

f

$         1,130,000

l

COST PER UNIT:

      Variable cost per unit

$                                 5

a

$                                 5

g

$                                5

m

       Fixed cost per unit

$                                 9

b

$                                 7

h

$                                6

n

TOTAL COST PER UNIT

$                     14

c

$                     12

i

$                     11

o

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