From the "what if" values, calculate the total cost when demand is 40,000. A. $2,000,000 B. $75,000 C. $1,100,000 D. $1,925,000

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 4P: Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2....
icon
Related questions
Question
In the spreadsheet below, there is data on the price, cost, demand, and quantity produced for an item.
There are also different "what if" values that can help a manager to calculate costs and revenue with
variability in demand.
A
B
C
1
Profit Model
2
What-
3
Data
IfDemand
Values
4
20,000
5 Unit Price ($)
50
40,000
9
Unit Cost ($)
25
55,000
7
Fixed Cost ($)
550,000
60,000
8
Demand
60,000
65,000
9
Quantity Produced
55,000
10
From the "what if" values, calculate the total cost when demand is 40,000.
A. $2,000,000
B. $75,000
C. $1,100,000
D. $1,925,000
Transcribed Image Text:In the spreadsheet below, there is data on the price, cost, demand, and quantity produced for an item. There are also different "what if" values that can help a manager to calculate costs and revenue with variability in demand. A B C 1 Profit Model 2 What- 3 Data IfDemand Values 4 20,000 5 Unit Price ($) 50 40,000 9 Unit Cost ($) 25 55,000 7 Fixed Cost ($) 550,000 60,000 8 Demand 60,000 65,000 9 Quantity Produced 55,000 10 From the "what if" values, calculate the total cost when demand is 40,000. A. $2,000,000 B. $75,000 C. $1,100,000 D. $1,925,000
Expert Solution
steps

Step by step

Solved in 4 steps with 4 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning