Please solve this general accounting question At Highline Corp., electricity cost starts with a minimumfixed cost, and after that, there is a perfectly variableexpense. Using estimated machine hours:Machine Hours Cost ($)40,00060,000$80,000$110,000What are:a) The estimated variable cost per machine hour?b) The estimated total fixed cost?

Step 1: Definition of Variable Cost and Fixed CostVariable Cost per Machine Hour: The portion of…

Answered: At Highline Corp., electricity cost…

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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What is estimated variable cost per machine hour?
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At Delta Co. Electricity cost starts with a minimum fixed cost.
Given the following cost and activity observations for Leno Enterprises'utilities, use the high-low method to calculate Leno's variable utilities cost permachine hour. Cost Machine HoursSeptember £4,100 22,000October £3,700 18,000November £3,900 19,000December £4,500 28,000a) £0.08b) £4.86c) £0.25d) £12.50
MACHINE HOURS COST
Using the high-low method, the variable rate is calculated to be $3.00 per machine hour: (S27,950 – $25,160)/(5,430 - 4,500) = $3.00. Using the high-low method, the fixed cost of electricity is calculated to be $11,660: $27,950 - (S3.00 × 5,430) = %3D S11,660. Using this information, construct a Cost Equation for electricity. Explain each element of the equation. Using this equation, estimate the total electricity cost for December, given that the estimated number of machine hours in December will be 5,300. 9. Pate Company is evaluating a project requiring an initial capital expenditure of $806,250. The project has an estimated life of 4 years and no salvage value. The yearly estimated net income and net cash flow from the project is as follows Year Net Cash Flow/Income 0. (806,250) 575,00 502,000 3 409,500 350,500 The company's minimum desired rate of return (cost of capital) is 12% REQUIRED: Calculate the following: (A) Payback Period; (B) Accounting Rate of Return; (C) Present Value…
General Accounting problem
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Suppose a ceiling fan manufacturer has the total cost function C(x) = 35x + 1200 and the total revenue function R(x) = 65x. (a) What is the equation of the profit function P(x) for this commodity? P(x) = (b) What is the profit on 20 units? P(20) = Interpret your result. The total costs are less than the revenue. The total costs are more than the revenue. The total costs are exactly the same as the revenue. (c) How many fans must be sold to avoid losing money? fans
Describe the cost formula for a strictly variable cost such as electrical power cost of 1.15 per machine hour (i.e., every hour the machinery is run, electrical power cost goes up by 1.15).
A company has developed a production cost equation for its lone product: Y = 30 + 5X, where X is based on the number of labor hours. Assuming a relevant range of 10 to 20 labor hours, what is the estimated production cost at zero (0) labor hour? a. P 30 b. P 80 c. P130 d. The exact amount cannot be determined without additional information

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