Reference no: EM132540058
Question - Calculate the unknowns for the following independent situations. All given activity levels are within the relevant range.
1) Total fixed costs for Company Z are $100,000. Total costs, both fixed and variable, are $350,000 if 125,000 units are produced.
Calculate:
a) Variable cost per unit
b) Fixed cost per unit if 125,000 units are produced
c) Total variable costs if production decreases to 100,000 units
2) Total variable costs are $300,000 if 50,000 units are produced.
Total fixed costs are $200,000 if 35,000 units are produced.
Calculate:
a) Unit variable cost
b) Fixed cost per unit if 35,000 units are produced
c) Total variable costs if 35,000 units are produced.
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