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1.Acompanyestimatesthatitstotalcosttoacquirematerials,setupmachines,andproduceproductsis$45perunitproducedin2014.In2014,therewere100,000unitsproducedandvariablecostsperunitproducedtotaled$17.In2015,thecompanyexpectstotalfixedcostsandvariablecostsperunittobethesameasin2014.Ifthecompanybudgetstoproduce105,000unitsin2015,whataretheexpectedtotalcostsandexpectedcostsperunitfor2015? 2. Assume the same facts as in part a, except the company expects to produce 98,000 units in 2015. What are the expected total
- 1.Acompanyestimatesthatitstotalcosttoacquirematerials,setupmachines,andproduceproductsis$45perunitproducedin2014.In2014,therewere100,000unitsproducedandvariablecostsperunitproducedtotaled$17.In2015,thecompanyexpectstotalfixedcostsandvariablecostsperunittobethesameasin2014.Ifthecompanybudgetstoproduce105,000unitsin2015,whataretheexpectedtotalcostsandexpectedcostsperunitfor2015?
- 2. Assume the same facts as in part a, except the company expects to produce 98,000 units in 2015. What are the expected total costs and expected costs per unit for 2015?
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