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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