FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Sales
Variable Costs
Contribution Margin
Fixed Costs
Operating Income
Total at 2,000 UnitⓇer Unit
800,000 400
321,000 160.50
239.60
479,000
182,000
279,000
2) Do total fixed costs change if units change from 1,000 to 2,000 units? Why or why not? Please mention the concept of
relevant range in your answer. What is the variable cost per unit and what are the total variable costs for 2,000 units?
Please explain your calculations and reference to the chart in Figure 1.
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Transcribed Image Text:Sales Variable Costs Contribution Margin Fixed Costs Operating Income Total at 2,000 UnitⓇer Unit 800,000 400 321,000 160.50 239.60 479,000 182,000 279,000 2) Do total fixed costs change if units change from 1,000 to 2,000 units? Why or why not? Please mention the concept of relevant range in your answer. What is the variable cost per unit and what are the total variable costs for 2,000 units? Please explain your calculations and reference to the chart in Figure 1.
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