Question
maryoual Assignment.O Illustration.I some signment. Out of 30% produce produced at a total cost of Birr Illustration.1 soo quintal of flour has been sold during the period,unit costs are essential to assign 2,500,000.00 to cost of goods sold , and 000 Quantity produced 7.500,10,000,12,500,15,000 A. Assume that out 7,500,10,000,12,500,15,000 the 500,000 .00 is fixed that does not change over the relevant range. Instruction: Based on the above data perform the following Task Task.1 Compute total variable cost Task.2 Identify the Fixed cost Task.3 Compute the total cost of production for all units given Task.4 How much is variable cost per unit for all units given
Solution
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Janessa
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Answer
To solve the tasks based on the given data, let's break down each task:### Task 1: Compute Total Variable CostThe total cost is given as
500,000.00. The variable cost is the total cost minus the fixed cost.
### Task 2: Identify the Fixed CostThe fixed cost is already provided in the problem statement as $500,000.00.### Task 3: Compute the Total Cost of Production for All Units GivenThe total cost of production includes both fixed and variable costs. Since the fixed cost remains constant across all levels of production, we can calculate the total cost for each quantity by adding the fixed cost to the variable cost for that quantity.For each quantity produced:- **7,500 units**:
- **10,000 units**:
- **12,500 units**:
- **15,000 units**:
Note: The total variable cost does not change with the number of units because it was calculated for the entire production range.### Task 4: How Much is Variable Cost Per Unit for All Units GivenThe variable cost per unit is calculated by dividing the total variable cost by the number of units produced.For each quantity produced:- **7,500 units**:
- **10,000 units**:
- **12,500 units**:
- **15,000 units**:
These calculations provide the necessary information for each task based on the given data.