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Unformatted text preview: variables to consider such as raw materials, labor, and other costs described earlier. C. I would take the average of each sq footage that is required of floor space and divide it from the rental cost. (This is assuming that rental cost does not include utilities). Two other costs that would be difficult to allocate to specific toys would be depreciation value, and advertising costs. 11-1 A. fixed B. fixed C. fixed D. variable E. Variable F. Mixed 11-6 # OF TROPHIES 8,000 10,000 12,000 14,000 Total costs incurred Fixed $48,000 $48,000 $48,000 $48,000 Variable 48,000 36,000 28,800 24,768 Total costs $96,000 $84,000.00 $76,800.00 $72,768.00 Cost Per unit Fixed $6.00 $ 6.00 $ 6.00 $ 6.00 Variable $6.00 4.5 3.6 3.1 Total cost per trophy $12.00 $10.50 $9.60 $9.10 Price drops per unit because % drops as units go up. 11-15 51,000 units $1,428...
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- Spring '10
- Depreciation, Financial Managerial Financial Managerial Financial Financial Managerial Financial Managerial, asset expense asset