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An ice cream factory hired you as a consultant because they would like to know...

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Accounting

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An ice cream factory hired you as a consultant because they would like to know the total costs per tonne of ice cream at different levels of production. You went to the factory and gathered the following information. Data Machinery depreciation per annum Machinery maintenance per annum Labour per tonne of ice cream Material per tonne of ice cream Insurance per annum Rent per annum Electricity per tonne of ice cream 5,000 1,000 10 5 3,000 10,000 1 REQUIRED: a. Calculate variable, fixed and total costs for 500t, 1,000t and 2,000t of ice cream. b. Calculate variable, fixed and total costs per tonne of ice cream while producing 500t, 1,000t and 2,000t. c. Explain the reason why the cost of a tonne of ice cream is cheaper when the level of production is 2,000t compared to 500t

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