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Lovvern Trophies makes and sells trophies it distributes to little league ballplayers. The company

Price: $2.99


Lovvern Trophies makes and sells trophies it distributes to little league ballplayers. The company
normally produces and sells between 8,000 and 14,000 trophies per year. The following cost data
apply to various activity levels:

Number of trophies 8,000 10,000 12,000 14,000
Total costs incurred
Fixed $42,000
Variable 42,000
Total costs $84,000
Cost per unit
Fixed $ 6.00
Variable 6.00
Total cost per trophy $ 12.00

Required

a. Complete the preceding table by filling in the missing amounts for the levels of activity
shown in the first row of the table. Round all cost per unit figures to the nearest whole penny.

b. Explain why the total cost per trophy decreases as the number of trophies increases.

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