This Question 1 pt 17 of 27 0 complete This Quiz 55 pts poss

This Question: 1 pt 17 of 27 (0 complete) This Quiz: 55 pts possible Total foxed costs for Randoliph Manufacturing are S774.000 Total costs, including both fxed and variable, a $1,010 000 160 000 units are produced The fued cost per unt at 238 500 units would be closest to OA $3 25unit C$484/unt ?D.SO99int F4FS 2 Ul W E R T

Solution

1. The fixed cost per unit will not change if the number quantities changed. So the fixed cost per unit at 238500 units would be closest to 4.84 (774000/160000)

2. The answer is 60720. We will see how it comes

Average cost per unit = 18

Units produced = 2500

Total cost = 45000

Variable cost = (45000-5700 (fixed cost) ) = 39300

Variable cost per unit = 39300/2500 = 15.72

Variable cost for 3500 units = 3500x15.72 = 55020

Total cost for 3500 units = 55020+5700 = 60720

3. The answer is 378000

Total cost for 130000 units is = 329000

Fixed cost = 165000, Hence variable cost = 329000-165000 = 164000

variable cost for 300000 units = (164000/130000)* 300000= 378000 (rounded)

(1.26 x 300000)