Question: Relevant Range and Fixed Costs and Variable Costs Quigley Inc. manufactures memory chips for electronic toys within a relevant range of 200,000 to 600,000 memory
Relevant Range and Fixed Costs and Variable Costs
Quigley Inc. manufactures memory chips for electronic toys within a relevant range of 200,000 to 600,000 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:
| Components produced | 200,000 | 400,000 | 600,000 |
| Total costs: | |||
| Total variable costs . . . . . . . . . | $250,000 | (d) | (j) |
| Total fixed costs . . . . . . . . . . . . | 600,000 | (e) | (k) |
| Total costs . . . . . . . . . . . . . . . . . | $850,000 | (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. When computing the cost per unit, round to two decimal places.
| Cost Report | |||
| Components produced | 200,000 | 400,000 | 600,000 |
| Total costs: | |||
| Total variable costs | $250,000 | $____ | $_____ |
| Total fixed costs | 600,000 | ||
| Total costs | $850,000 | $_____ | $____ |
| Cost per Unit | |||
| Variable cost per unit | $_______ | $_____ | $_____ |
| Fixed cost per unit | |||
| Total cost per unit | $_____ | $______ | $______ |
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