Consider the following costs of Zula Ltd over the relevant range of 5 000 to 2 0000 units produced. Units produced 5 000 10 000 15 000 20 000 Variable cost $200 000 ? ? ? Fixed cost $1 800 000 ? ? ? Total ? ? ? ? Cost per unit Variable cost ? ? ? ? Fixed cost ? ? ? ? Total ??? Required Complete the above table [13] (b) A company purchased plant and equipment 4 years ago for $100 000. Depreciation is provided using the straight line method over 10 years. The company decided to revalue at the end of the fourth year. The carrying amount was $60 000. The net replacement cost of the plant and equipment was considered to be $75 000 at that date. 

Required 

(i) Calculate the gross replacement cost 

(ii) Calculate accumulated depreciation on gross replacement cost 

(iii) Calculate the carrying amount.

Answer rating: 100% (QA)

Fixed Cost Will not Change with change in Volume of Production so fixed Cost Will be Constant for al... View the full answer