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Please show all calculations :) Cost classifications/cost behavior (5pts): Listed below are the total costs incurred for BadgerBox, Inc., a smartphone case manufacturer when 2,000
Please show all calculations :)
- 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.
- Calculate total fixed costs incurred and the fixed costs per unit when 1,800 smartphone cases are produced.
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