Provide correct answer general Accounting question Acme uses the high-low method of estimating costs.Acme had total costs of $29,245 at its lowest level ofactivity when 15,000 units were sold. When, at its highestlevel of activity, sales equaled 20,300 units, total costswere $39,050. Acme would estimate the variable cost perunit as

Step 1: Define High-Low MethodThe high-low method is used to estimate variable and fixed costs from…

Answered: Acme uses the high-low method of…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4BE

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Colton Dry Cleaners has determined the following about its costs: Total variable expenses are $42,000, total fixed expenses are $30,000, and the sales revenue needed to break even is $50,000. Determine the company’s current 1) sales revenue and 2) operating income. (Hint: First, find the contribution margin ratio; then prepare the contribution margin income statement.)
What is the unit variable cost on these general accounting question?
Radison Enterprises sells a product for $92 per unit. The Costs that vary in total dollar amount as the level of activity changes.variable cost is $59 per unit, while Costs that tend to remain the same in amount, regardless of variations in the level of activity.fixed costs are $223,245. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $100 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $100 per unit units
RR Company uses the high-low method to analyze cost behavior. The company observed that at 2,000 machine hours of activity, total maintenance costs averaged ₱40.00 per hour. When activity jumped to 6,000 machine hours, the average cost per machine hour totaled ₱35.00. If the number of machine hours would exceed 5,000, fixed cost would increase by ₱20,000. On the other hand, if it will be below 1,000 machine hours, fixed cost would decrease by ₱10,000. But, regardless of the number of machine hours, variable cost per unit remains constant. 1. If RR plans to incur 4,500 machine hours, the total cost would be _______. 2. If RR plans to incur 5,300 machine hours, the total cost would be _______.
Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $1.89 per unit, and the variable labor cost is $3.4 per unit. a. What is the variable cost per unit? b. Suppose the company incurs fixed costs of $790,000 during a year in which total production is 355,500 units. What are the total costs for the year? c. If the selling price is $10.2 per unit, what is the NSI break-even on a cash basis?
Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company’s annual fixed costs are $562,500. 1. Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break-even point. 2. If the company’s fixed costs increase by $135,000, what amount of sales (in dollars) is needed to break even?
Smith Corporation has variable costs equal to $5.10 per unit, fixed costs of $11,000, and total output equal to 240 units. What is the total cost?
Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $16.00 per unit, and the variable labor cost is $7.30 per unit. a. What is the variable cost per unit? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Suppose the company incurs fixed costs of $860,000 during a year in which total production is 380,000 units. What are the total costs for the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. If the selling price is $49.50 per unit, what is the cash break-even point? If depreciation is $660,000 per year, what is the accounting break-even point? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Please fill out this chart with
Data table Month Total Cost Machine Hours January.. 3,420 1,090 February..... S 3,760 1,120 March .... $ 3,532 1,080 April ..... 3,720 1,220 May S 4,800 1,330 June 4,192 1,480 .. %24 %24
Sunn Company manufactures a single product that sells for $140 per unit and whose variable costs are $105 per unit. The company's annual fixed costs are $563,500. (b) Compute the company's contribution margin ratio. (c) Compute the company's break-even point in units. (d) Compute the company's break-even point in dollars of sales.
Suppose a company has fixed costs of $47,600 and variable cost per unit of ². +222 dollars, where x is the total number of dollars per unit. units produced. Suppose further that the selling price of its product is 1656- (a) Find the break-even points. (Enter your answers as a comma-separated list.) x= (b) Find the maximum revenue. (Round your answer to the nearest cent.) $ (c) Form the profit function P(x) from the cost and revenue functions. P(x) Find maximum profit. (d) What price will maximize the profit? (Round your answer to the nearest cent.)

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Acme uses the high-low method of estimating costs. Acme had total costs of $29,245 at its lowest level of activity when 15,000 units were sold. When, at its highest level of activity, sales equaled 20,300 units, total costs were $39,050. Acme would estimate the variable cost per unit as