Question

Gibson Trophies makes and sells trophies it distributes to little league ballplayer s. The company normally produces and sells between 3,000 and 9,000 trophies per year. The following cost data apply to various activity levels: Required Cost per unit answers to 2 decimal places.) Complete the preceding table by filing in the missing amounts for the levels of activity shown in the first row of the table. (Round 7,000 Fixed S 68,000 42,000 S 110,000 Cost per unit $ 22.67 14.00 36.67 Fixed
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Answer #1
Number of Trophies 3,000 5,000 7,000 9,000
Total Cost Incurred
   Fixed 68,000 68,000 68,000 68,000
   Variable 42000 70000 98000 126000
   Total Cost 110,000 138,000 166,000 194,000
Cost per unit
   Fixed 22.67 13.6 9.71 7.56
   Variable 14 14 14 14
Total Cost per Trophny 36.67 27.6 23.71 21.56
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