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Seneca College *

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440

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Accounting

Date

Nov 24, 2024

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pdf

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2

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11/1/23, 8:48 PM Chapter 4 Post-Class Homework https://www.ameengage.com/mod/quiz/review.php?attempt=4642825&cmid=1260499 1/2 Dashboard / My courses / [Seneca 09/2023] HTM440NHA - Nardi / CHAPTER 4 - Cost-Volume-Profit Analysis / Chapter 4 Post-Class Homework Question 1 Not answered Mark 0.00 out of 3.00 Started on Wednesday, 1 November 2023, 11:18 AM State Finished Completed on Wednesday, 1 November 2023, 11:18 AM Time taken 8 secs Grade 0.00 out of 104.00 ( 0 %) Take me to the text Banner Food Processing prepares ready-to-eat meals. At Banner, the cost of prepared meals has a fixed component and a variable component related to the number of meals prepared. The cost and number of meals prepared at the kitchen for the past seven months are provided below. Month Number of Prepared Meals Cost of Meals June 501 $2,098 July 594 $2,450 August 228 $1,063 September 761 $3,083 October 664 $2,716 November 722 $2,935 December 1,085 $4,312 Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. Using the high-low method, What would be the expected cost of meals prepared for a month in which 540 meals are prepared? Variable Cost per Unit: $ Fixed Cost: $ Total Cost Incurred: $ Explanation a) Find the month with the highest number of units and month with the lowest number of units. Divide the difference in costs by the difference in units. Variable Cost per Unit = ($4,312 - $1,063) / (1,085 - 228) = $3.79 b) Fixed Cost = $4,312 - ($3.79 x 1,085) = $199.85 c) Total Cost Incurred = $3.79 x 540 + $199.85 = $2,246.45
11/1/23, 8:48 PM Chapter 4 Post-Class Homework https://www.ameengage.com/mod/quiz/review.php?attempt=4642825&cmid=1260499 2/2
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