Cost Relationships The following costs are for Optical View Inc., a contact lens manufacturer: RequiredCalculate and graph total costs, the total variable cost, and total fixed cost.For each level of output calculate the per-unit total cost, per-unit variable cost, and per-unit fixed cost.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. Output in UnitsFixed CostsVariable CostsTotal Costs$ 7,5009,00010,50012,000$4,750$12,25013,75015,25016,7502503004,7503504,7504,750400

Total Cost of production includes both fixed cost and variable costs. Variable costs are those which…

Answered: Output in Units Fixed Costs Variable…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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:

Required

Calculate and graph total costs, the total variable cost, and total fixed cost.
For each level of output calculate the per-unit total cost, per-unit variable cost, and per-unit fixed cost.
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.

Output in Units
Fixed Costs
Variable Costs
Total Costs
$ 7,500
9,000
10,500
12,000
$4,750
$12,250
13,750
15,250
16,750
250
300
4,750
350
4,750
4,750
400

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