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MANAGERIAL ACCOUNTING QUESTIONS

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At current sales volume of 100 units, fixed costs (FC) are $3 per unit and variable costs (VC) are $7 per unit. a) Compute total fixed costs at current sales volume. total FC b) Suppose that sales volume increases to 125 units. At this new volume, total FC FC per unit VC per unit = total VC- c) Write down the total cost equation: *volume (e.g., if TC 500+2*volume, enter 500 in the first box and 2 in the second box) Predict total costs at sales volume of 80 units: Predict total costs at sales volume of 120 units: d) When sales volume increases by 1 unit, total costs O increase by unit VC = $7 increase by unit FC $3 increase by unit cost- $10 O not enough information