The variable cost of producting one cookie

2. The variable cost of producting one cookie is 0.75. Fixed costs per week are $1,000. A. Sketch a graph of costs in the relevant range 0-1,000 cookies. Label each cost graph and the data points for 0 and 1,000 cookies. B. Provide the equation for the straight line that represens these costs. 3.Prepare a flexible budget for the producion and sale of 50 units: Sales revenue $100 per unit Direct Material $25 per unit Direct labor $15 per unit Commission $10 per unit Fixed costs $50 for the production of up to 75 units 4. Prepare an income statement that shows the cost of goods sold. Beginning End Direct material inventory $ 27,000 $24,500 Work in process inventory $ 25,000 $29,000 Finished goods inventory $ 22,000 $15,000 Direct materials purchased $ 21,000 Direct labor(2,500hrs@ $12) $ 30,000 Indirect labor $ 3,000 Indirect materials $ 2,500 Office supplies expense $ 100 Equipment depre-factory $ 2,000 Equipment depre-office $ 750 Administrative expenses $ 20,000 Office utilities $ 75 Factory utilities $ 200 Marketing expense $ 2,500 Sales $150,000 Sales commissions $ 1,500

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