Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow.UnitsProducedTotalLumberCostTotalUtilitiesCostTotal MachineDepreciationCost7,000 shelves$84,000 $9,050 $140,000 14,000 shelves168,000 17,100 140,000 28,000 shelves336,000 33,200 140,000 35,000 shelves420,000 41,250 140,000 For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost. Complete the following table with your answers. Round variable portion of cost (per unit) answers to two decimal places.CostFixed Portionof CostVariable Portionof Cost (per Unit)Lumber Utilities Depreciation

Total costs: Economic costs involve not just the accounting costs but also the opportunity cost of…

Answered: Cover-to-Cover Company is a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow.

Units Produced	Total Lumber Cost	Total Utilities Cost	Total Machine Depreciation Cost
7,000 shelves	$84,000	$9,050	$140,000
14,000 shelves	168,000	17,100	140,000
28,000 shelves	336,000	33,200	140,000
35,000 shelves	420,000	41,250	140,000

For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost. Complete the following table with your answers. Round variable portion of cost (per unit) answers to two decimal places.

Cost	Fixed Portion of Cost	Variable Portion of Cost (per Unit)
Lumber
Utilities
Depreciation

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