Current annual fixed manufacturing costs within the

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview:   Variablecosts,fixedcosts,totalcosts. PlanA: 100minutes×$0.08=$8.00   300minutes×$0.08=$24.00   500minutes×$0.08=$40.00  PlanB: 100minutes=$16.00   300minutes=$16.00   500minutes=$16.00+$10.00(200minutes×$0.05)=$26.00  PlanC: 100minutes=$20.00   300minutes=$20.00   500minutes=$20.00+$0.80(20minutes×$0.04)=$20.80  If Compo plans to make 100 minutes of long ­‑distance calls each month, she should choose Plan A; for 300 minutes, choose Plan B; for 500 minutes, choose PlanC.   2 ­‑24 (20min.)  1.  2.   3.    Variablecosts,fixedcosts,relevantrange. Sincetheproductioncapacityis4,000jawbreakerspermonth,thecurrent annual relevant range of output is 0 to 48,000 jaw breakers (4,000 jaw breakers×12months). Current annual fixed manufacturing costs within the relevant range are $1,000×12 =$12,000forrentandotheroverheadcosts,...
View Full Document

This document was uploaded on 02/04/2014.

Ask a homework question - tutors are online