A soccer ball manufacturer plans to make 100,000 balls per year. The following annual costs are estimated:

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Labor and materials are variable costs and the remaining costs are fixed.

a. What are the annual fixed costs of making soccer balls?

b. What is the variable cost per soccer ball?

c. What is the average cost per ball?

d. If the manufacturer is operating normally and not near capacity, what is the expected cost of making 1,000 more balls?

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Management Accounting In A Dynamic Environment

ISBN: 9780415839020

1st Edition

Authors: Cheryl S McWatters, Jerold L Zimmerman

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Question Posted: May 12, 2024 01:01 AM

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A soccer ball manufacturer plans to make 100,000 balls per year. The following annual costs are estimated:

Question:

Utilities Machines Administration Marketing Labor 10,000 50,000 100,000 120,000 200,000 Materials 150,000 Total 630,000

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Management Accounting In A Dynamic Environment

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