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

Info icon This preview shows pages 1–4. Sign up to view the full content.

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
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

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
Image of page 2
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.
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern