Number of Units Direct Materials Cost Total Direct Produced per Unit Materials Cost 30,000 units $10 $300,000 35,000 10 350,000 40,000 10 400,000 45,000 10 450,000 50,000 10 500,000 Select the item that represents the relevant range for cost behavior analysis. Direct Materials Cost per Unit APPLY THE CONCEPTS: Determine the total variable cost Costs that change in direct proportion to the number of units produced or the amount of services provided are known as "variable costs." Variable costs are directly tied to activity bases and generally take the form of either direct labor or direct materials. A manufacturing company makes widgets with direct materials cost in the amount of $10 per unit. Because all production is done by robots, there are no labor costs directly associated with the production of widgets. To illustrate, assume that the manager wants to know total variable cost if 450 units were produced: Variable Cost per Units Total Variable x = Unit Produced Cost E x 450 units = E Calculate total direct materials cost at different levels along the relevant range of 100-500 units. If your answer is zero, enter "0". Number of Units Produced Total Direct Materials Cost 0 units 100 200 300 400 500 WWW Based on the completed table above, select the graph that correctly represents the data. 1: O u \"I E B E 'U E a. a 3 D ,_ 0 r'--' l l I \"1* l I Cl 100 200 31]) 400 500 El!) 700 Number of Unit's Produced earn 0 U 50m .E E In E g 5003 b- 2 20m 3 D ._ 1W] 0 l' I I r I I I 0 100 200 300 400 500 SIZE) 700 Number of Units Produced 70w '3' (.1 60m 'E soon 21 ID E 40115 13 E 3000 C. E g 2000 ICED 0 O 100 200 500 400 500 600 700 Number of Units Produced 70m '6: 5 6000 E 2 50m 3 I\" E m t! E 3000 d. 5 g 2000 10m