5&6

Deter Exercise 2-5A Fixed versus variable cost behavior Tanaka Company's cost and production data for two recent months included the following: March April Production (units) 300 600 Rent $1,800 $1,800 Utilities $600 $1,200 Required Separately calculate the rental cost per unit and the utilities cost per unit for both March and April. b. Identify which cost is variable and which is fixed. Explain your answer. Exercise 2-6A Fixed versus variable cost behavior Leach Trophies makes and sells trophies it distributes to little league ballplayers. The company nor- mally produces and sells between 6,000 and 12,000 trophies per year. The following cost data apply to various activity levels: 6,000 8,000 10,000 12,000 Number of Trophies Total costs incurred Fixed Variable $ 60,000 60,000 $120,000 Total costs Cost per unit Fixed $ 10.00 10.00 Variable Total cost per trophy $ 20.00 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 iece as the number of trophies increases