Cost Relationships The following costs are for Optical View Inc., a contact lens manufacturer:Output in Units Fixed Costs Variable Costs Total Costs250 $4,750 $ 7,500 $12,250 300 4,750 9,000 13,750350 4,750 10,500 15,250400 4,750 12,000 16,750Required1. Calculate and graph total costs, total variable cost, and total fixed cost.2. For each level of output calculate the per-unit total cost, per-unit variable cost, and per-unit fixed cost.3. Using the results from requirement 2, graph the per-unit total cost, per-unit variable cost, and per-unitfixed cost, and discuss the behavior of the per-unit costs over the given output levels.
Cost Relationships The following costs are for Optical View Inc., a contact lens manufacturer:Output in Units Fixed Costs Variable Costs Total Costs250 $4,750 $ 7,500 $12,250 300 4,750 9,000 13,750350 4,750 10,500 15,250400 4,750 12,000 16,750Required1. Calculate and graph total costs, total variable cost, and total fixed cost.2. For each level of output calculate the per-unit total cost, per-unit variable cost, and per-unit fixed cost.3. Using the results from requirement 2, graph the per-unit total cost, per-unit variable cost, and per-unitfixed cost, and discuss the behavior of the per-unit costs over the given output levels.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cost Relationships The following costs are for Optical View Inc., a contact lens manufacturer:
Output in Units Fixed Costs Variable Costs Total Costs
250 $4,750 $ 7,500 $12,250
300 4,750 9,000 13,750
350 4,750 10,500 15,250
400 4,750 12,000 16,750
Required
1. Calculate and graph total costs, total variable cost, and total fixed cost.
2. For each level of output calculate the per-unit total cost, per-unit variable cost, and per-unit fixed cost.
3. Using the results from requirement 2, graph the per-unit total cost, per-unit variable cost, and per-unit
fixed cost, and discuss the behavior of the per-unit costs over the given output levels.
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