Ajax had average costs per unit of $10 when sales equaled 10,000 units and avera

Question

Ajax had average costs per unit of $10 when sales equaled 10,000 units and average costs per unit of $6.50 when sales equaled 24,000 units. Fixed costs were Ajax had total costs of $50,000 when 5,000 units were sold. When sales equaled 12,000 units, total costs were $78,000. Variable costs were Acme had total costs of $250,000 when 5,000 units were sold. When sales equaled 12,000 units, total costs were $390,000. Fixed costs were Acme had average costs per unit of $50 when sales equaled 1,000 units and average 46 per unit of $32,50 when sales equaled 2,400 units. Fixed costs were Acme had total costs of $250,000 when 5,000 units were sold. When sales equaled 12,000 units, total costs were $390,000. Variable costs were

Explanation / Answer

73) Total cost for 10000 units sold = 10000 * 10 = 100000 Total cost for 24000 units sold = 24000 * 6.50 = 156000 Additional cost for additional 14000 units ( 24000 - 10000) = 56000 ( 156000 - 100000) Hence variable cost for additional 1 unit = 56000/14000 = 4 Hence fixed cost is 10 - 4 = 6 Total fixed cost = 10000 * 6 = 60000 Hence option A is correct 74) Total cost for 5000 units sold = 50000 Total cost per unit = 50000/50000 = 10 Total cost for 12000 units sold = 78000 Additional cost for additional 7000 units ( 12000 - 5000) = 28000 ( 78000 - 50000) Hence variable cost for additional 1 unit = 28000/7000 = 4 Hence variable cost is 4 Option C is correct 75) Total cost for 5000 units sold = 250000 Total cost per unit = 250000/5000 = 50 Total cost for 12000 units sold = 390000 Additional cost for additional 7000 units ( 12000 - 5000) = 140000 ( 390000 - 250000) Hence variable cost for additional 1 unit = 140000/7000 = 20 Hence fixed cost per unit is 50 - 20 = 30 Total fixed cost = 5000 * 30 = 150000 Hence option B is correct 76) Total cost for 1000 units sold @ 50 = 50000 Total cost for 2400 units sold @ 32.50 = 78000 78000 Additional cost for additional 1400 units ( 2400 - 1000) = 28000 ( 78000 - 50000) Hence variable cost for additional 1 unit = 28000/1400 = 20 Hence fixed cost is 50-20 = 30 Total fixed cost = 1000 * 30 = 30000 Hence option D is correct 77) Total cost for 5000 units sold = 250000 Total cost per unit = 250000/5000 = 50 Total cost for 12000 units sold = 390000 Additional cost for additional 7000 units ( 12000 - 5000) = 140000 ( 390000 - 250000) Hence variable cost for additional 1 unit = 140000/7000 = 20 Hence option C is correct

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