Based on the following assumptions, calculate the total monthly fixed and variable costs for a company that manufactures cellular phones. The company produces 2,000 cellular phones a month
Cost to make each cellular phone is $25
A phone Cellular Phones are sold for $130
A phone Monthly Rent for the Building is $15,000
Fixed expenses are $40,000

Total monthly fixed and variable costs:

a) Monthly Fixed costs:

Rent for building = $15,000

Fixed expenses =    40,000

Total fixed costs =  $55,000

b) Variable costs = $25 per phone

Total phones produced = 2,000

Total variable costs = 2,000 * $25

= $50,000

Explanation:

a) Data:

Quantity of phones per month = 2,000

Variable cost per phone = $25

Selling price per phone = $130

Monthly Rent for building = $15,000

Fixed Expenses = $40,000

b) The company's fixed costs are the expenses that are constant over a period of time.  The unit fixed costs varies with the level of production while the total remains constant.  Example is the monthly rent for building, which is $15,000.  The variable costs are the costs the company incurs which vary according to the level of production or activities.  The unit cost remains constant while the total variable costs changes.

answer; buying the bill at a discount from the face value to be received at maturity;

answergoing to the symphony;