Hightide Upholstery Company manufactures a special fabric used to upholster the seats in power boats. The company’s annual fixed production cost is $100,000. Required: - Essay Prowess

Hightide Upholstery Company manufactures a special fabric used to upholster the seats in power boats. The company’s annual fixed production cost is $100,000. Required:

Hightide Upholstery Company manufactures a special fabric used to upholster the seats in power boats.  The company’s annual fixed production cost is $100,000.  Required:

  1. Draw a graph of the company’s fixed production cost showing the total cost at the following production levels of upholstery fabric: 10,000 yards, 20,000 yards, 30,000 yards, and 40,000 yards. 
  2. Prepare a table that shows the unit cost and the total cost for the firm’s fixed production costs at  the following production levels: 1 yard, 10 yards, 10,000 yards, and 40,000 yards.

Hilton, Ronald. Managerial Accounting: Creating Value in a Dynamic Business Environment (p. 72). McGraw-Hill Higher Education.
ISBN-13: 978-1260566390

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