Essay
Cactus Cookies incurred the following costs this month to manufacture 1,000 jumbo chocolate chip cookies. Calculate each of the following:
a. The total variable cost this month
b. The total fixed cost this month
c. The variable cost per cookie this month
d. The fixed cost per cookie this month
e. The total variable cost if Cactus Cookies had manufactured 2,000 cookies this month
f. The total fixed cost if Cactus Cookies had manufactured 2,000 cookies this month
g. The variable cost per cookie if Cactus Cookies had manufactured 2,000 cookies this month
h. The fixed cost per cookie if Cactus Cookies had manufactured 2,000 cookies this month
Correct Answer:

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a. Total variable cost: $502.50 = $75.00...View Answer
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