Homework Chapter 11

Homework Chapter 11 - Exercise 11-1 Requiremen Fixed...

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Exercise 11-1 Requiremen t Fixed Variable Mixed a. x b. x c. x d. x e. x f. x Exercise 11-2 Requiremen t Fixed Variable Mixed a. x b. x c. x d. x e. x f. x g. x h. x i. x j. x

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Exercise 11-3 Calculate total fixed cost: Item Cost Depreciation cost \$  30,000 Officers' salaries cost 100,000 Long-term lease cost 40,000 Property taxes cost 10,000   Total fixed cost \$180,000 Units Produced (a) 4,000 4,500 5,000 Total fixed cost (b) \$180,000 \$180,000 \$180,000 Fixed cost per unit (b  ÷  a) \$45 \$40 \$36 Exercise 11-4 Units Produced (a) 10,000 15,000 20,000 Variable cost per unit (b) \$8.20 \$8.20 \$8.20 Total variable cost (a x b) \$82,000 \$123,000 \$164,000
Exercise 11-5 a. Units Produced (a) 100 200 Total rent cost (b) \$2,000 \$2,000 Rent cost per unit (b  ÷  a) \$20 \$10 Total utility cost (c) \$500 \$1,000 Utility cost per unit (c  ÷  a) \$5 \$5 b. Since the total  rent cost remains unchanged when the number of  units produced changes, it is a fixed cost.  Since the total  utility  cost changes in direct proportion with changes in the number of  units, it is a variable cost.

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