# Montana Company manufactures chocolate candy. Its manufacturing costs are as follows: Annual fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . .

Montana Company manufactures chocolate candy. Its manufacturing costs are as follows:

Annual fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,000

Variable costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2 per box of candy

1. Plot variable costs, fixed costs, and total costs on a graph for activity levels of 0 to 30,000 boxes of candy.

2. Plot a revenue line on the graph, assuming that Montana sells the chocolates for $5 a box.

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**Related Book For**

## Accounting concepts and applications

**ISBN:** 978-0538745482

11th Edition

**Authors:** Albrecht Stice, Stice Swain

**Question Details**

Chapter #

**21**Section: Practice Exercises

Problem: 38

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