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Homework answers / question archive / Ross's company starts a manufacturing project and produces a single product

Ross's company starts a manufacturing project and produces a single product

Accounting

Ross's company starts a manufacturing project and produces a single product. The schedule for the project's total and per produced each year follows:

 

  Units Produced
Total Costs (I) 60 (II) 80 (III) 100
Variable Costs P120 P? P?
Fixed Costs     600
Total Costs P P P

 

 

  Units Produced
Costs per Unit (I) 60 (II) 80 (III) 100
Variable Costs P? P? P?
Fixed Costs P? P? P?

 

Based on the given data:

  • - Complete the schedule by filling up correct amounts in the blanks.
  • - Determine the expected cost if the company produces 90 units.

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We have Fixed cost = 600 which remain constant and

Variable per unit = 120 / 60 = 2 per unit

 

             Units 60 80 100 90
Vatiable @ 2 per unit 120 160 200 180
Fixed cost 600 600 600 600
           Total cost 720 760 800 780

 

Answer 2

 

Total cost = Variable cost + Fixed cost

= (90 * 2 ) + 600 = 780

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