Fixed versus variable cost behavior Bradford Trophies makes and sells trophies it distributes to
Fixed versus variable cost behavior Bradford 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.
Number of trophies
11,000
12,000
13,000
Total costs incurred
10,000
Fixed
$60,000
Variable
50,000
Total costs
$110,000
Cost per unit
Fixed
$6.00
Variable
5
Total cost per trophy
$11.00
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
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