Question

relevant range and fixed and variable costs

child play inc. manufactures electronic toys within a relevant range of 20,000 to 150,000 toys per year. within this range, the schedule has been prepared:

complete the cost schedule. when computing the cost per unit, round to two decimal places.

toys produced: 40,000 | 80,000 | 120,000

total costs:
total variable costs: $720,000 | d. $ | j. $
total fixed costs: 600,000 | e. | k.
total costs: $1,320,000 | 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:

Calculate variable cost per unit and total variable costs

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Calculate fixed costs and fixed cost per unit

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Calculate total costs and total cost per unit

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Answer:

Toys produced	40,000	80,000	120,000
Total variable costs	\$720,000	d. \$1,440,000	j. \$2,160,000
Total fixed costs	600,000	e. \$600,000	k. \$600,000
Total costs	\$1,320,000	f. \$2,040,000	l. \$2,760,000
Cost per Unit:
Variable cost per unit	a. \$18.00	g. \$18.00	m. \$18.00
Fixed cost per unit	b. \$15.00	h. \$7.50	n. \$5.00
Total cost per unit	c. \$33.00	i. \$25.50	o. \$23.00