Noor Company provided data for the total cost of two levels of monthly production volume. The company produces one product. 4000 1000 Sales volume (units) 48000$ $12000 direct material 20000$ 5000$ direct employment 84000$ 24000$ additional industrial costs 9000$ 6000$ Total marketing costs 2000$ 2000$ total administrative costs Required : 1 Calculate the initial costs at the level of 4000 units 2 Calculate period costs at the level of 1000 units 3 Using the upper bound method, calculate the unit variable cost component of the additional industrial costs and the fixed cost component of the additional industrial costs. 4 What is the total cost when the company produces 2500 units

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Author:Amos Gilat
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Noor Company provided data for the total cost of two levels of monthly
production volume. The company produces one product.
4000
1000
Sales volume (units)
48000$ $12000
20000$
direct material
5000$
direct employment
84000$ 24000$
additional industrial
costs
9000$
6000$
Total marketing
costs
2000$
2000$
total administrative
costs
Required :
1_ Calculate the initial costs at the level of 4000 units
2 Calculate period costs at the level of 1000 units
3_ Using the upper bound method, calculate the unit variable cost
component of the additional industrial costs and the fixed cost component
of the additional industrial costs.
4 What is the total cost when the company produces 2500 units
Transcribed Image Text:Noor Company provided data for the total cost of two levels of monthly production volume. The company produces one product. 4000 1000 Sales volume (units) 48000$ $12000 20000$ direct material 5000$ direct employment 84000$ 24000$ additional industrial costs 9000$ 6000$ Total marketing costs 2000$ 2000$ total administrative costs Required : 1_ Calculate the initial costs at the level of 4000 units 2 Calculate period costs at the level of 1000 units 3_ Using the upper bound method, calculate the unit variable cost component of the additional industrial costs and the fixed cost component of the additional industrial costs. 4 What is the total cost when the company produces 2500 units
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