Answered step by step
Verified Expert Solution
Question
1 Approved Answer
LINEA Brilliant Brains are a company that specializes in the manufacturing of electric cars. Each electric car requires one battery, at a cost of $55
LINEA Brilliant Brains are a company that specializes in the manufacturing of electric cars. Each electric car requires one battery, at a cost of $55 per battery. Using the following data of Brilliant Brains answer the following questions: No. of cars produced Total Yaciable cost Total Fixed Costa Eixed.cost per car Mariable Cast Per Car OMR 55 O car 25 cars 55 OMR 480 50 cars 55 55 OMRO 1,375 2,750 4,125 5,500 OMR 12,000 12,000 12,000 12,000 12,000 75 cars 100 cars 240 160 55 120 Requirements: a. Draw a chart that shows the costs for batteries at various levels of activity. Using the chart explain how total variable costs and variable cost per unit behave with changes in cost driver (Rubric: 0.25 mark for each correct element on the graph and the correct slope, 1 mark for the explanation. Total 2 marks) b. Draw a chart that shows the total fixed costs at various levels of activity. Using the chart explain how total fixed costs behave with changes in cost driver. (Rubric: 0.5 mark for each correct element on the graph and the correct slope, I mark for the explanation. Total 2 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started