Boxwood Company sells wooden boxes from a kiosk in a mall. Fixed costs are $2,500 per month and the variable cost is $2.75 per item. Complete the following table for the levels of units sold. Number of units1001,00010,000Total fixed cost???Fixed cost per unit???Variable cost per unit???Total variable cost???Total cost???Cost per unit???
What will be an ideal response?
| Number of units | 100 | 1,000 | 10,000 |
| Total fixed cost | $2,500 | $2,500 | $2,500 |
| Fixed cost per unit | 25.00 | 2.50 | 0.25 |
| Variable cost per unit | 2.75 | 2.75 | 2.75 |
| Total variable cost | 275 | 2,750 | 27,500 |
| Total cost | 2,775 | 5,250 | 30,000 |
| Cost per unit | 27.75 | 5.25 | 3.00 |
Total fixed cost remains $2,500, but fixed cost per unit is $2,500 divided by the number of units. Variable cost per unit remains $2.75, but total variable cost is $2.75 times the number of units. Total cost is total fixed cost plus total variable cost, and cost per bar is fixed cost per unit plus variable cost per unit.
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What will be an ideal response?
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What will be an ideal response?
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