Reference no: EM132662010
Cost Behaviour
Alisha Limited manufactures medical stents for use in heart bypass surgery. Based on past experience, Alisha has found that its total maintenance costs can be represented by the following formula:
Maintenance cost = $460,000 + $12.50 X
where X = Number of heart stents. Last year, Alisha produced 150,000 stents. Actual maintenance costs for the year were as expected.
Required:
Question 1. What is the total maintenance cost incurred by Alisha last year?
Question 2. What is the total fixed maintenance cost incurred by Alisha last year?
Question 3. What is the total variable maintenance cost incurred by Alisha last year?
Question 4. What is the maintenance cost per unit produced? Round your answer to two decimal places.
Question 5. What is the fixed maintenance cost per unit? Round your answer to two decimal places.
Question 6. What is the variable maintenance cost per unit? Round your answer to two decimal places.
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