Hernadez Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between 10,000 and 13,000 trophies per year. The following cost data apply to various activity levels.

Required:

a. Complete the preceding table by filling in the missing amounts for the levels of activity shown in the first row of the table. Round all cost per unit figures to the nearest whole penny.

b. Explain why the total cost per trophy decreases as the number of trophies increases.

Transcribed Image Text:

Number of Trophies 10,000 11,000 12,000 13,000 Total costs incurred Fixed Variable $ 60,000 50,000 Total costs $110,000 Cost per unit Fixed $ 6.00 Variable 5.00 Total cost per trophy $11.00