Question

Thermal Technology, Inc. manufactures a special chemical used to coat certain electrical components that will be exposed to high heat in various applications. The company’s annual fixed production cost is $500,000.

Required:
1. Draw a graph of the company’s fixed production cost showing the total cost at the following production levels of the chemical: 50,000 liters, 100,000 liters, 150,000 liters, and 200,000 liters.
2. Prepare a table that shows the unit cost and the total cost for the firm’s fixed production costs at the following production levels: 1 liter, 50 liters, 50,000 liters, and 200,000 liters.
3. Prepare a graph that shows the unit cost for the company’s fixed production cost at the following production levels: 50,000 liters, 100,000 liters, 150,000 liters, and 200,000 liters.



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  • CreatedApril 22, 2014
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