Holland Enterprises produces mason jars. Fixed costs total $33,000. At a production level of 20,000 units,...

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Holland Enterprises produces mason jars. Fixed costs total $33,000. At a production level of 20,000 units, total costs (fixed

business accounting

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Answer 1

Answer #1

At the Production level of 20,000 units:-

Fixed Costs=$33,000

Total Costs(fixed and variable)=$543,000

Calculations for Total Variable Costs and Variable Cost per unit:-

Total Costs=(Total Fixed Costs+Total Variable Costs)

So,

Total Variable Costs=(Total Costs- Total Fixed Costs)

=($543,000-$33,000)

=$510,000

Variable cost per unit=(Total Variable Costs/Total units produced)

=($510,000/20,000 units)

=$25.5

At the level of 32,000 units:-

Total Variable Costs=(Variable Cost per unit* Units produced)

=($25.5*32,000 units)

=$816,000

Total Fixed Costs=$33,000

Because Fixed Costs remains same at each level of production.

Total Costs=(Total Variable Costs+Total Fixed Costs)

=($816,000+$33,000)

=$849,000

So the Total Costs for Next period is $849,000.

So the Answer is Option C. $849,000

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Answer 2

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