Kiwi Ltd manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for the production of 2,000 units. The Water and light and Maintenance are mixed costs. The fixed portions of these costs are $200 and $300, respectively.
Instructions: Calculate the expected costs to be incurred when production is 3,000 units. Use your knowledge of cost behaviour to determine which of the other costs are fixed or variable.

Question

Kiwi Ltd manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for the production of 2,000 units. The Water and light and Maintenance are mixed costs. The fixed portions of these costs are $200 and $300, respectively.
  Instructions: Calculate the expected costs to be incurred when production is 3,000 units. Use your knowledge of cost behaviour to determine which of the other costs are fixed or variable.

Quizplus · Accepted Answer

The Answer of Kiwi Ltd manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for the production of 2,000 units. The Water and light and Maintenance are mixed costs. The fixed portions of these costs are $200 and $300, respectively.
  Instructions: Calculate the expected costs to be incurred when production is 3,000 units. Use your knowledge of cost behaviour to determine which of the other costs are fixed or variable.

Kiwi Ltd Manufactures a Single Product