Lazer Tag manufactures computer parts within a relevant range of 50.000 to 100.000 units per year. Complete the following manufacturing cost schedule (a through ) for Lazer Tag. Fill in the following chart. Parts Produced 50,000 100.000 TOTAL COSTS: Variable $75,000 Fixed 50.000 Total COSTS PER UNIT: Variable Fixed Total ***NO DOLLAR SIGNS "S" OR COMMAS "," IN YOUR ANSWERS***
Lazer Tag manufactures computer parts within a relevant range of 50.000 to 100.000 units per year. Complete the following manufacturing cost schedule (a through ) for Lazer Tag. Fill in the following chart. Parts Produced 50,000 100.000 TOTAL COSTS: Variable $75,000 Fixed 50.000 Total COSTS PER UNIT: Variable Fixed Total ***NO DOLLAR SIGNS "S" OR COMMAS "," IN YOUR ANSWERS***
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:### Manufacturing Cost Schedule Analysis
Lazer Tag manufactures computer parts within a relevant range of 50,000 to 100,000 units per year. Complete the following manufacturing cost schedule (a through f) for Lazer Tag by filling in the following chart.
#### Cost Schedule Table:
| Parts Produced | 50,000 | 100,000 |
|------------------------|--------|---------|
| TOTAL COSTS: | | |
| Variable | 75,000 | |
| Fixed | 50,000 | 50,000 |
| **Total** | | |
| | | |
| COSTS PER UNIT: | | |
| Variable | | |
| Fixed | | |
| **Total** | | |
***Note: Do not include dollar signs "S" or commas "," in your answers.
This table is designed to help understand how the costs behave as the production volume changes. Specifically:
- **Variable Costs**: These costs change in direct proportion to the level of output.
- **Fixed Costs**: These costs remain unchanged in total regardless of the level of production within the relevant range.
Here’s how to approach filling in the fields:
1. **Variable Costs**: Since variable costs depend on the number of units produced, they can be found by knowing the cost per unit.
2. **Fixed Costs**: These remain the same irrespective of the number of units produced.
3. **Total Costs**: Sum of variable and fixed costs.
4. **Costs Per Unit**: Total costs divided by the number of units produced.
This schedule provides insight into how economies of scale impact costs per unit and overall cost structure. It is a vital tool for planning and decision-making in production and pricing strategy.
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