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ACCT 254 Fixed Costs and Quantity Relationship Assignment Make It Company manufactures one...

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Accounting

ACCT 254
Fixed Costs and Quantity Relationship Assignment
Make It Company manufactures one product. Its variable manufacturing cost is $25 per unit; total fixed manufacturing cost is $1,500,000.
Required:
1.) Calculate Make It's total manufacturing costs if it produces 20,000 units.
2.) What would be the total cost per unit (including both fixed and variable costs) assuming that Make It produces 20,000 units?
3.) Calculate Make It's total manufacturing costs if it produces 40,000 units.
4.) What would be the total cost per unit assuming that Make It produces 40,000 units?
5.) Compare your answers from parts 2 and 4. If the cost per unit is different at 20,000 units than at 40,000 units, explain why.
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