Varina Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between 6,000 and 12,000 trophies per year. The following cost data apply to various activity levels:

Required
a. Complete the preceding table by filling in the missing amounts for the levels of activity shown in the first row of the table. Round all cost-per-unit figures to the nearest whole penny.
b. Explain why the total cost per trophy decreases as the number of trophiesincreases.

Transcribed Image Text:

Number of Trophies 6,000 8,000 10,000 12,000 Total costs incurred Fixed Variable Total costs $48,000 48,000 $96,000 Cost per unit Fixed Variable Total cost per trophy $ 8.00 8.00 16.00