ABC Company manufactures and sells a single product. A partially completed schedule of the companys total and
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Question:
ABC Company manufactures and sells a single product. A partially completed schedule of the company’s total and per unit costs over a relevant range of 60,000 to 80,000 units produced and sold each year is given below:
Unit produced and sold | |||
60000 | 70,000 | 80,000 | |
Total costs: | |||
Variable costs | Tk 180,000 | ? | ? |
Fixed costs | Tk 450,000 | ? | ? |
Total costs | Tk 6,30,000 | ? | ? |
Cost per unit: | |||
Variable cost | ? | ? | ? |
Fixed cost | ? | ? | ? |
Total cost per unit | ? | ? | ? |
Requirements:
- Complete the schedule.
- Express the variable and fixed costs in the form Y= a+bX.
- Assume that the company will produces 1,00,000 units next year , what will be the total cost?
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
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