Vogel Inc. manufactures memory chips for electronic toys within a relevant range

Question

Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 45,000 to 75,000 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:

Complete the cost schedule. When computing the cost per unit, round to two decimal places.

Check My Work

Components produced 45,000 60,000 75,000 Total costs:     Total variable costs . . . . . . . . . $1,350,000 (d) (j)     Total fixed costs . . . . . . . . . . . . 810,000 (e) (k)     Total costs . . . . . . . . . . . . . . . . . $2,160,000 (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)

Explanation / Answer

Components produced 45000 60000 75000 Total costs:     Total variable costs . . . . . . . . . 1350000 1800000 2250000     Total fixed costs . . . . . . . . . . . .   810000 810000 810000     Total costs . . . . . . . . . . . . . . . . . 2160000 2610000 3060000 Cost per unit:     Variable cost per unit . . . . . . . 30 30 30     Fixed cost per unit . . . . . . . . . . 18 13.5 10.8     Total cost per unit . . . . . . . . . . 48 43.5 40.8

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