Beggars Banquet Inc makes and sells sweatshirts for college students. The company normally produces and sells...

 

Transcribed Image Text:

Beggars Banquet Inc makes and sells sweatshirts for college students. The company normally produces and sells between 25,000 and 50,000 The following cost data applies to various activity levels Number of Sweatshirts Total Costs Incurred Fixed Variable Total Costs Cost per Unit Fixed Variable Total Cost per Sweatshirt 25,000 $375,000 $150,000 $525,000 $15.00 $6.00 $21.00 32.500 40,000 per year 50,000 REQUIRED 1. Complete the schedule above by filling in the missing $ amounts for the 4 different levels of activity shown in the first row of the table. Round all cost per unit figures to the nearest whole penny 2. In your own words, explain why the total cost per sweatshirt decreases as the number of sweatshirts increases. Beggars Banquet Inc makes and sells sweatshirts for college students. The company normally produces and sells between 25,000 and 50,000 The following cost data applies to various activity levels Number of Sweatshirts Total Costs Incurred Fixed Variable Total Costs Cost per Unit Fixed Variable Total Cost per Sweatshirt 25,000 $375,000 $150,000 $525,000 $15.00 $6.00 $21.00 32.500 40,000 per year 50,000 REQUIRED 1. Complete the schedule above by filling in the missing $ amounts for the 4 different levels of activity shown in the first row of the table. Round all cost per unit figures to the nearest whole penny 2. In your own words, explain why the total cost per sweatshirt decreases as the number of sweatshirts increases.

Answer rating: 100% (QA)

To complete the schedule with the missing amounts we need to calculate the fixed and variable costs ... View the full answer