What is the cost formula for maintenance? At an activity level of 5,500 units, the cost formaintenance is $6,800; at 9,500 units, the cost formaintenance is $10,600. Using the high-lowmethod, what is the costmaintenance?Select one:a. $1.15 per unitb. $1.10 per unitc. $700 plus $1.05 per unitd. $1,575 plus $0.95 per unitformulafor

Explanation of High-Low Method:The High-Low Method is a cost estimation technique used to separate…

Answered: At an activity level of 5,500 units,…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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Given the cost formula Y = $12,500 + $5.00X, total cost for an activity level of 4,000 units would be: Select one: a. $16,000 b. $20,000 c. $12,500 d. $32,500
A cost is $5,600 at 1,000 units, $9,000 at 2,000 units, and $10,200 at 3,100 units. This cost is a __. A. mixed cost. B. fixed cost. C. step cost. D. variable cost.
Find out BEP in units and value with the following data:Fixed cost - $30000Variable cost - $20 per unitSelling Price - $50 per unit.
K Suppose that a company offers quantity discounts. If up to 1,000 units are purchased, the unit price is $12; if more than 1,000 and up to 5,000 units are purchased, the unit price is $8.00; and if more than 5,000 units are purchased, the unit price is $7.50. Develop an Excel template using the VLOOKUP function to find the unit price associated with any order quantity and compute the total cost of the order. Complete the formulas in the spreadsheet below. Select the correct VLOOKUP function in cell C8 to find the unit price for the order quantity. (Type integers or decimals rounded to two decimal places as needed.) 1 2 3 5 6 7 8 6 A B C Purchase Quantity 1 to 1000 1001 to 5000 5001 or more Quantity Ordered Unit Price Total Cost 2400 D Unit Price $ $ $
sing the following data, apply the high-low method of cost analysis to the three cost data groups: Volume Alpha Beta Gamma 2,000 $6,600 $2,400 $8,000 6,000 $9,800 $7,000 $8,000 13,000 $13,000 $12,000 $8,000 20,000 $21,000 $24,000 $8,000 What cost behavior patterns are apparent for Beta? Select one: a. Fixed b. Variable c. Mixed d. Semi-fixed e. None of the above
5. The unit variable cost is $6.43, unit selling price is $10, total fixed costs are $638.03, and the projected sales are 430 units. Calculate: a. Net income b. Contribution Margin
Correct Answer✅
a) Determine the variable cost per unit and the fixed cost using the high-low method.b) What is the equation of the total mixed cost function?c) Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scaleof 2 cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the yaxis.
1. Calculate the contribution margin rate, the sales dollar breakeven point, and the unit sales breakeven point. 2. Use the following information to perform your calculations. a. Net Sales: $50,000.00 b. Contribution Margin: $20,000.00 c. Total Fixed Costs: $15,500.00 d. Unit Sales Price: $25.00 3. Provide the formula and write out the equation that you use for each calculation. a. Contribution Margin Rate: b. Sales Dollar Breakeven Point: C. Unit Sales Breakeven Point:
Using the following data, apply the high-low method of cost analysis to the three cost data groups: Volume Alpha Beta Gamma 2,000 $6,600 $2,400 $8,000 6,000 $9,800 $7,000 $8,000 13,000 $13,000 $12,000 $8,000 20,000 $21,000 $24,000 $8,000 What cost behavior patterns are apparent for Gamma? Select one: a. Fixed b. Variable c. Mixed d. Semi-fixed e. None of the above
What is the cost behavior type if the total cost is $60,000 at activity level of 6,000 hours, and $80,000 at 9,000 hours? Why?
If the variable cost is P15/unit, fixed cost is 265,000; and Sales is P55. Find the BEPs, and BEPx. Use the Target Profit Analysis Equation Method. Compute for the following: • Contribution Margin Ratio • Break-Even Point in Sales • Break-Even Point in Units IMPORTANT NOTE: PLEASE REFER TO THE GIVEN LESSON. USE THE FORMULA FROM THE LESSON IN THE PHOTE ATTACHED. THANK YOU. I will give you upvote for this.

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