Question Content Area

Cost Behavior

Alisha Incorporated manufactures medical stents for use in heart bypass surgery. Based on past experience, Alisha has found that its total maintenance costs can be represented by the following formula: Maintenance Cost = $263,000 + $16.90X where X = Number of Heart Stents. Last year, Alisha produced 90,000 stents. Actual maintenance costs for the year were as expected.

Required:

1. What is the total maintenance cost incurred by Alisha last year? Round your answer to the nearest dollar. $fill in the blank 1

2. What is the total fixed maintenance cost incurred by Alisha last year? Round your answer to the nearest dollar. $fill in the blank 2

3. What is the total variable maintenance cost incurred by Alisha last year? Round your answer to the nearest dollar. $fill in the blank 3

4. What is the maintenance cost per unit produced? Round your answer two decimal places. $fill in the blank 4per unit

5. What is the fixed maintenance cost per unit? Round your answer two decimal places. $fill in the blank 5per unit

6. What is the variable maintenance cost per unit? Round your answer two decimal places. $fill in the blank 6per unit