Question

Child Play Inc. manufactures electronic toys within a relevant range of 20,000 to 150,000 toys 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. 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

Answer 1

Answer:

Instructions are below.

Explanation:

Giving the following information:

Toys produced 40,000

Total variable costs= $720,000

Total fixed costs= $600,000

Total costs= $1,320,000

Between the relevant range, the fixed costs remain constant.

First, we need to calculate the unitary variable cost:

Unitary variable cost= total variable cost/total number of units

Unitary variable cost= 720,000/40,000= $18 per unit.

For 80,000 units:

Total variable cost= 18*80,000= 1,440,000

Fixed costs= 600,000

Total cost= $2,040,000

For 120,000 units:

Total variable cost= 18*120,000= 2,160,000

Fixed costs= 600,000

Total cost= $2,760,000