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a) After completing Exercise 1, what is the correct total for Fixed Cost per Unit in the 140,000 unit column? See circle on the printed
a) After completing Exercise 1, what is the correct total for Fixed Cost per Unit in the 140,000 unit column? See circle on the printed exercise.
Cost Behavior Fixed and Variable Costs Review the following characteristics of Fixed and Variable costs. It's important to remember that these costs behave differently on a TOTAL basis versus a PER UNIT basis TOTAL Varies with activit Stays constant PER UNIT Stays constant Varies with activit Variable Costs Fixed Costs EXERCISE 1: ProTech Inc. manufactures cell phones with a relevant range of 100,000 to 140,000 phones per year. Use the below information to complete the analysis for each range of production (fill in shaded cells). Hint: Start with calculating Variable Cost per Unit in the 100,000 column Phones Produced 100,000 units 120,000 units 140,000 units Total Costs Total Variable Costs Total Fixed Costs Total Costs $ 40,000 $84,000 $124,000 Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit Mixed Costs: When evaluating some costs, it's not always apparent how much of that cost behaves in a variable manner verses a fixed manner. In those cases, we must use an estimation technique One such technique is called the High/Low method. The High/Low method relies on a range of past data points to estimate the variable cost. Then, this variable cost is used to estimate the fixed portionStep by Step Solution
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