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Sales Variable Costs Contribution Margin Fixed Costs Operating Income Total at 2,000 UnitⓇer Unit 800,000 321,000 479,000 182,000 279,000 400 160.50 239.60 2) Do total fixed costs change if units change from 1,000 to 2,000 units? Why or why not? Please mention the concept of relevant range in your answer. What is the variable cost per unit and what are the total variable costs for 2,000 units? Please explain your calculations and reference to the chart in Figure 1.

Sales Variable Costs Contribution Margin Fixed Costs Operating Income Total at 2,000 UnitⓇer Unit 800,000 321,000 479,000 182,000 279,000 400 160.50 239.60 2) Do total fixed costs change if units change from 1,000 to 2,000 units? Why or why not? Please mention the concept of relevant range in your answer. What is the variable cost per unit and what are the total variable costs for 2,000 units? Please explain your calculations and reference to the chart in Figure 1.

FINANCIAL ACCOUNTING
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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Sales Variable Costs Contribution Margin Fixed Costs Operating Income Total at 2,000 UnitⓇer Unit 800,000 400 321,000 160.50 239.60 479,000 182,000 279,000 2) Do total fixed costs change if units change from 1,000 to 2,000 units? Why or why not? Please mention the concept of relevant range in your answer. What is the variable cost per unit and what are the total variable costs for 2,000 units? Please explain your calculations and reference to the chart in Figure 1.
Transcribed Image Text:Sales Variable Costs Contribution Margin Fixed Costs Operating Income Total at 2,000 UnitⓇer Unit 800,000 400 321,000 160.50 239.60 479,000 182,000 279,000 2) Do total fixed costs change if units change from 1,000 to 2,000 units? Why or why not? Please mention the concept of relevant range in your answer. What is the variable cost per unit and what are the total variable costs for 2,000 units? Please explain your calculations and reference to the chart in Figure 1.
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