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Cost classifications/cost behavior (5pts): Listed below are the total costs incurred for BadgerBox, Inc., a smartphone case manufacturer when 2,000 smartphone cases are produced. The
- Cost classifications/cost behavior (5pts): Listed below are the total costs incurred for BadgerBox, Inc., a smartphone case manufacturer when 2,000 smartphone cases are produced. The smartphone cases sell for $49.99 each.
Variable Costs: | |
Delivery costs | $500 |
Logo imprinting on cases | $50 |
Plastic used in cases | $1,000 |
Sales commissions | $600 |
Wages of assembly line workers | $6,000 |
| |
Fixed Costs: | |
Administrative salaries main office | $19,210 |
Advertising | $3,455 |
Depreciation - Factory equipment | $1,800 |
Factory Manager salary | $4,500 |
Factory rent | $2,920 |
Main office rent | $1,035 |
Repairs and Maintenance Factory | $730 |
Repairs and Maintenance Main office | $295 |
- (1pt) When 2,000 smartphone cases are produced, calculate the total manufacturing cost incurred and the manufacturing cost per smartphone case (i.e. manufacturing cost per unit).
- (2pts) Assume production were to increase to 2,400 smartphone cases. Answer the following:
- Calculate total variable costs incurred and the variable costs per unit when 2,400 smartphone cases are produced.
- Calculate total fixed costs incurred and the fixed costs per unit when 2,400 smartphone cases are produced.
- (2pts) Assume production were to decrease to 1,800 smartphone cases. Answer the following:
- Calculate total variable costs incurred and the variable costs per unit when 1,800 smartphone cases are produced.
4. Calculate total fixed costs incurred and the fixed costs per unit when 1,800 smartphone cases are produced.
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