Reference no: EM132719697

Canada Croon Co is based in Collingwood, Ontario. They produce recordings of owl and other bird calls that are sold around the world. The cost driver is the number of recordings made. Zoology students on summer job programs form the majority of the direct labour pool and are paid on an hourly basis. Other office workers are salaried.

Canada Croon Co has been tracking its utility costs including heat, hydro and water and has found that the costs are represented by the following formula:

Utility costs = $20,000 + $2.00 X
where X is the number of recordings made. Last year the company made 6,000 recordings. Actual utility costs for the year were as expected.

Use the above information to answer all of the following questions.

Question 1: What was the total utility cost for last year?

Question 2: What was the total fixed utility cost for last year?

Question 3: What was the total variable utility cost for last year?

Question 4: What was the utility cost per unit manufactured last year?

Question 5: What was the fixed utility cost per unit last year?

Question 6: What was the variable utility cost per unit last year?

Question 7: What would the total utility cost be if NO units were made this year because the factory was closed all year due to a pandemic?

Question 8: What would the total fixed utility cost be if NO units were made this year due to a pandemic?

Question 9: What would the total variable utility cost be if NO units were made this year due to a pandemic?

Question 10: How many units would be manufactured this year if the factory was closed due to a pandemic?