SeyChy Collected the Following Data on Manufacturing Costs and Activity

question 56

Essay

SeyChy collected the following data on manufacturing costs and activity cost drivers for two months: $\begin{array}{lcc}&\text { November }& \text { December }\\\text { Activity level in units } & 3,000 & 7,500 \\\\\text { Variable costs } & £ 7,500 & £ ? \\\text { Fixed costs } & 25,000 & ? \\\text { Mixed costs } & 11,500& 13,750\\\text { Total manufacturing costs } &? &?\end{array}$

a.What is total variable cost per unit?
b.What is the total fixed cost?
c.What is the estimated total manufacturing cost for January if the budgeted activity in January is 6,000 units?

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Definitions:

Total Market

The entire pool of potential customers for a product or service, encompassing all segments and demographics.

Identifiable Groups

Collections of individuals or entities that can be distinctly recognized based on certain characteristics or criteria.

Elicited Set

A group of relevant brands or products that a consumer recalls and considers during the decision-making process.

Product Alternatives

Different products or services that serve the same purpose or fulfill the same need for a consumer, offering options in the marketplace.