Question: Relevant Range and Fixed and Variable Costs Third World Gamer Inc. manufactures components for computer games within a relevant range of 500,000 to 1,000,000 disks
Relevant Range and Fixed and Variable Costs
Third World Gamer Inc. manufactures components for computer games within a relevant range of 500,000 to 1,000,000 disks per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:
| Components produced | 500,000 | 750,000 | 1,000,000 | |||
| Total costs: | ||||||
| Total variable costs | $600,000 | (d) | (j) | |||
| Total fixed costs | 600,000 | (e) | (k) | |||
| Total costs | $1,200,000 | (f) | (l) | |||
| Cost per unit: | ||||||
| Variable cost per unit | (a) | (g) | (m) | |||
| Fixed cost per unit | (b) | (h) | (n) | |||
| Total cost per unit | (c) | (i) | (o) | |||
Complete the cost schedule below. Round costs per unit to the nearest cent.
| Cost Schedule | ||||||
| Components produced | 500,000 | 750,000 | 1,000,000 | |||
| Total costs: | ||||||
| Total variable costs | $600,000 | $ | $ | |||
| Total fixed costs | 600,000 | $ | $ | |||
| Total costs | $1,200,000 | $ | $ | |||
| Cost per unit: | ||||||
| Variable cost per unit | $ | $ | $ | |||
| Fixed cost per unit | ||||||
| Total cost per unit | $ | $ | $ | |||
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