221_Solutions_Chap_2_Fa_05 - E2-16a. 4 f. 9 k. 8 or 12...

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Unformatted text preview: E2-16a. 4 f. 9 k. 8 or 12 (Slope of total costs increases.) b. 2 g. 6 l. 3 c. 7 h. 1 m. 10 d. 5 i. 7 e. 11 j. 2 E2-17a.Discretionary b.Committed c.Discretionary d.Discretionary e.Discretionary f.Committed g.Discretionary E2-18 a.Total Variable Total Costs Total Average Monthly Fixed (Unit Monthly Unit VolumeCosts$0.40)CostsCost100 $10,000 $ 40 $10,040 $100.40 1,000 10,000 400 10,400 10.40 5,000 10,000 2,000 12,000 2.40 10,000 10,000 4,000 14,000 1.40 b. Because the variable costs remain constant at $0.40 per unit, an average cost of $0.60 will occur when the average fixed cost is $0.20 per unit. This will occur at 50,000 servings per month: $10,000/$0.20 = 50,000servings per month E2-22 a.Variable costs = ($65,000 $20,000)/(4,000 1,000) =$15per sales order Fixed costs = $65,000 $15(4,000) = $5,000or = $20,000 $15(1,000) $5,000Monthly order = $5,000 + $15X processing costs where: X= sales orders b. $0$10,000$20,000$30,000$40,000$50,000$60,000$70,0001,0002,0003,0004,000Sales ordersTotal order processing costsVariable costs = ($40,000 $20,000)/(3,000 1,000) =$1per sales order Fixed costs = $40,000 $10(3,000) = $10,000or = $20,000 $10(1,000) Representative values $10,000...
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This homework help was uploaded on 02/19/2008 for the course H ADM 221 taught by Professor Gpotter during the Spring '05 term at Cornell University (Engineering School).

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221_Solutions_Chap_2_Fa_05 - E2-16a. 4 f. 9 k. 8 or 12...

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