Question 1 - Fixed vs. Variable costs; Total vs. per unit: Tortoise Coast manufactures gaming...
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Question 1 - Fixed vs. Variable costs; Total vs. per unit: Tortoise Coast manufactures gaming headsets. Its monthly fixed manufacturing costs are $25,000 in total for rent and depreciation. Its variable manufacturing costs per headset produced and sold are $3.50 per headset. a. Calculate total fixed, total variable, and total (i.e. total fixed + total variable) manufacturing costs at the following levels of activity: 1) 5,000 headsets per month 2) 10,000 headsets per month 3) 15,000 headsets per month 4) 20,000 headsets per month b. Calculate average (i.e. per unit) fixed, average (i.e. per unit) variable, and average (i.e. per unit) total manufacturing costs per headset at the following levels of activity: 1) 5,000 headsets per month 2) 10,000 headsets per month 3) 15,000 headsets per month 4) 20,000 headsets per month
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