Home
/
Business
/
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

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

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

expert verifiedExpert Verified
4.5(222 Voting)
avatar
JanessaProfessional · Tutor for 6 years

Answer

To solve the tasks based on the given data, let's break down each task:<br /><br />### Task 1: Compute Total Variable Cost<br />The total cost is given as $2,500,000.00, with a fixed cost of $500,000.00. The variable cost is the total cost minus the fixed cost.<br /><br />\[ \text{Total Variable Cost} = \text{Total Cost} - \text{Fixed Cost} \]<br /><br />\[ \text{Total Variable Cost} = 2,500,000 - 500,000 = 2,000,000 \]<br /><br />### Task 2: Identify the Fixed Cost<br />The fixed cost is already provided in the problem statement as $500,000.00.<br /><br />### Task 3: Compute the Total Cost of Production for All Units Given<br />The 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.<br /><br />For each quantity produced:<br />- **7,500 units**: <br /> \[ \text{Total Cost} = \text{Fixed Cost} + \text{Variable Cost} = 500,000 + 2,000,000 = 2,500,000 \]<br /> <br />- **10,000 units**: <br /> \[ \text{Total Cost} = 500,000 + 2,000,000 = 2,500,000 \]<br /><br />- **12,500 units**: <br /> \[ \text{Total Cost} = 500,000 + 2,000,000 = 2,500,000 \]<br /><br />- **15,000 units**: <br /> \[ \text{Total Cost} = 500,000 + 2,000,000 = 2,500,000 \]<br /><br />Note: The total variable cost does not change with the number of units because it was calculated for the entire production range.<br /><br />### Task 4: How Much is Variable Cost Per Unit for All Units Given<br />The variable cost per unit is calculated by dividing the total variable cost by the number of units produced.<br /><br />For each quantity produced:<br />- **7,500 units**: <br /> \[ \text{Variable Cost per Unit} = \frac{2,000,000}{7,500} = 266.67 \]<br /><br />- **10,000 units**: <br /> \[ \text{Variable Cost per Unit} = \frac{2,000,000}{10,000} = 200 \]<br /><br />- **12,500 units**: <br /> \[ \text{Variable Cost per Unit} = \frac{2,000,000}{12,500} = 160 \]<br /><br />- **15,000 units**: <br /> \[ \text{Variable Cost per Unit} = \frac{2,000,000}{15,000} = 133.33 \]<br /><br />These calculations provide the necessary information for each task based on the given data.
Click to rate: