Innovative Computers Pty Ltd produces laptops. Each laptop contains a rechargeable battery and LCD screen. Batteries and
Question:
Innovative Computers Pty Ltd produces laptops. Each laptop contains a rechargeable battery and LCD screen. Batteries and screens are purchased from an outside supplier for \($192\) and \($300\) each, respectively. The production process is highly automated with an annual depreciation charge of \($1\) 440 000.
Required
(a) What are per computer and total costs of the rechargeable batteries and LCD screens for 10 computers, 100 computers, 1000 computers and 10 000 computers?
(b) What is the depreciation charge per computer if 1000 computers are produced each year? What would it be for 10 000 computers?
(c) What kind of cost behaviour is evident in requirements
(a) and (b)?
Step by Step Answer:
Accounting
ISBN: 9780730382737
11th Edition
Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie