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,…

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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Similar questions

Given the cost formula, Y = $16,000+ $3.40x, total cost for an activity level of 4,000 units would be: A. $13,600 OB. $3,600 C. $29,600 O D. $16,000
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
This cost is a?
If the total cost function is y = 6,300 + 2X, calculate the variable cost for 4,400 units. A. $8,800 B. $6,300 C. $12,600 O D. $15,100 O O
Assume that the situation can be expressed as a linear cost function. Find the cost function in this case. Marginal cost: $60; 120 items cost $8000 to produce. The linear cost function is C(x)= FEE
1. The following data pertains to activity and utility cost for two recent periods:Activity level (units) 8,000 5,000Utility cost $8,000 $6,500Utility cost is a mixed cost with both fixed and variable components. Using the high-lowmethod, the cost formula for utility cost is:A. Y = $1.00 XB. Y = $1.25 XC. Y = $4,000 + $0.50 XD. Y = $1,500 + $1.25 X
Use a cost-volume graph to determine the type of cost behavior exhibited in Groups A, B, and C. In the graph, volume should range from 0 to 24,000 units (in 4,000 unit increments), and cost should range from $0 to $35,000 (in $5,000 increments). Volume Group A Group B Group C (applicable to each group) Costs Costs Costs 2,000 12,000 16,000 20,000 $2,600 $1,000 $2,400 12,600 6,000 2,400 16,600 8,000 2,400 20,600 10,000 2,400 1. Identify the cost behavior (fixed, mixed, or variable) in the three groups. Group Cost behavior A B C 2. What is the expected total cost for Group B if volume is 0? $ 3. What is the expected total cost for Group C if volume is 0? Check
Complete the table below for contribution margin per unit, total contribution margin, and contribution margin ratio: (Click the icon to view the table.) Compute the missing information, starting with scenario A, then for scenarios B and C. (Enter the contribution margin ratio to nearest percent, X%.) A B C 1,290 units 14,390 units 3,600 units 1,400 4,400 $ 1,250 700 880 625 Number of units Sale price per unit Variable costs per unit Calculate: 700 Contribution margin per unit Total contribution margin 903,000 Contribution margin ratio 50% 3520 50,652,800 80% %
VC per unit when LAV is 100 units = $ 20FC per unit when LAV is 200 units = $ 10Required: Calculate each of the following:1. Total costs of production when LAV is 100 units = $2. Total costs of production when LAV is 200 units = $ 3. Total costs of production when LAV is 50 units $4. Total costs of production when LAV is 400 units = $5. Total costs of production when LAV is Zero units = 56. Unit cost when LAV is 500 units = $7. 8. Unit cost when LAV is 20 units = $9. Unit cost when LAV is 250 units = $10. Unit cost when LAV is 1 unit = $ Unit cost when LAV is Zero units = =
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
Correct Answer✅
Evaluate the quantity at which revenue equals to costs (break-even point). <use Goal seek> Assumptions: Fixed cost: 5000 Material costs per item: 2.25 Labor costs per item: 6.5 Shipping costs per 100 items: 200 Price per item: 12.99

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