Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completicHoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven105,000 kilometers during a year, the average operating cost is 11.4 cents per kilometer. If a truck is driven only 70,000 kilometersduring a year, the average operating cost increases to 13.4 cents per kilometer.Required:1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated withthe fleet of trucks.2. Express the variable and fixed costs in the form Y = a +bX.3. If a truck were driven 80,000 kilometers during a year, what total operating cost would you expect to be incurred?Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Answer is complete but not entirely correct.If a truck were driven 80,000 kilometers during a year, what total operating cost would you expect to be incurred? (Do notround intermediate calculations.)Total annual cost$ 8,624< Required 2Required 3 >

1. Cost at highest level of activity (1,05,000*0.114) 11,970Cost at Lowest level of…

Answered: 1. Using the high-low method, estimate…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Currently the unit selling price of a product is $200, the unit variable cost is $110, and the total fixed costs are $585,000. A proposal is being evaluated to increase the unit selling price to $275. Under the proposed plan, the variable cost per unit and the total fixed cost will not change. 1) Calculate the contribution margin per unit. 2) Calculate the contribution margin ratio. 3) Calculate the breakeven point in units under the current scenario.
Required: i) Solve variable cost per unit . ii) Solve contribution margin per unit iii) Solve break - even point in units
D) is what i need assistance with
1. From the following data, calculate break-even point expressed in terms of units and also the new BEP, if selling price is reduced by 20%. Fixed cost: Depreciation Salaries Selling price SR 200,000 SR 50,000 SR 15 per unit Variable expenses: Materials Labor SR 5 per unit SR 5per unit
Given selling price is $20 per unit, fixed costs are $3 per unit, and profit per unit is $1, What is the contribution per unit? $4 $19 $1.25 $17 What is the answer?
If Actual sales are OMR 460000, Total Fixed costs OMR 120000, Selling price per unit OMR 50, and Variable cost per unit OMR 35, which of the following shows Margin of Safety (MS) as amount and as percentage (on sales)? Select one: a. MS=70000 and MS (%)=12.15 b. MS=100000 and MS (%)=15 c. MS=60000 and MS (%)=13.04 d. MS=62000 and MS (%)=13.42
A. APPLY THE CONCEPTS: Determine the mixed costs Costs that display characteristics of both fixed and variable costs simultaneously are called "mixed costs." The rental agreement on a piece of machinery stipulates an annual fee of $6,000 plus $2 for each hour of use. To illustrate, assume the manager wants to know what mixed costs will be at 7,000 hours of operation. Fixed Cost + (Variable Cost per Unit x Number of Units) = Mixed Cost $________________ + $_____ x 7,000 hours) = $___________ For this scenario, calculate the mixed costs at different levels across the relevant range, then graph them. Hours of Operation Mixed Cost 0 hours $________________ 4,000 $________________ 9,000 $________________ 12,000 $________________ 15,000 $________________ B. Based on the data from the table completed above, select the graph that correctly represents the mixed cost data. (selections in screenshot)
Floryn Instruments Co. developed the following regression equations to indicate costs at various activity levels: Direct labor = P4 per unitMaterials = P3 per unitSupervision = P5,000Power = 300 + P0.25 per unit + P0.50 per machine hourFactory supplies = P250 + P0.75 per unitDepreciation—equipment = P1 per machine hourDepreciation—building = P10,000During the next period, the company anticipates production of 20,000 units and usage of 3,000 machine hours.Required: Prepare a schedule of the production costs to be incurred during the next period.
Assume the following (1) selling price per unit = $30, (2) variable expense per unit = $18, and (3) total fixed expenses = $31,800. Given these three assumptions, the unit sales needed to achieve a target profit of $11,700 is: Multiple Choice O O 3,625 units. 15,325 units. 58,825 units. 43,500 units.
If Actual sales are OMR 490000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and Variable cost per unit OMR 35, which of the following shows Margin of Safety (MS) as amount and as percentage (on sales)? Select one: a. MS=40000 and MS (%)=8.16 b. MS=60000 and MS (%)=15.15 c. MS=72000 and MS (%)=16.42 d. MS=40000 and MS (%)=8.89
Reid Company is considering the production of a new product. The expected variable cost is $24 per unit. Annual fixed costs are expected to be $892,500. The anticipated sales price is $75 each. Required Determine the break-even point in units and dollars using each of the following: Use the equation method. Use the contribution margin per unit approach. Use the contribution margin ratio approach. (Do not round intermediate calculations. Round "Contribution margin ratio" to 1 decimal place. (i.e., 0.234 should be entered as 23.4))
Analysis of a project: In determining the annual profit of a project the following information is used: Variable costs are S /. 10 per unit, fixed costs vary according to the level of production in the following image: If the sale price is S /. 24 and sales of 15,000 units are expected, in addition, an annual profit of S /. 140,000. How many additional units must be sold at a price of S /. 20?

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