Bluewave Consulting leases a document printer that includes a fixed monthly fee plus a variable cost per page. In July, Bluewave made 18,000 prints and paid a total of $620. In September, they made 12,000 prints and paid $470. The company uses the high-low method to estimate costs. ⚫ Compute the variable cost per print and the fixed monthly fee. How much would Bluewave pay if it made 15,000 prints?

Bluewave Consulting leases a document printer that includes a fixed monthly fee plus a variable cost per page. In July, Bluewave made 18,000 prints and paid a total of $620. In September, they made 12,000 prints and paid $470. The company uses the high-low method to estimate costs. ⚫ Compute the variable cost per print and the fixed monthly fee. How much would Bluewave pay if it made 15,000 prints?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 11EA: Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge...

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Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a charge for each copy made. The company uses the high-low method to analyze costs. If Markson paid $360 for 5,000 copies and $280 for 3,000 copies, how much would Markson pay if it made 7,500 copies?
Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the bus 7,000 miles and paid a total of $1,360 in June. In October. Able Transport paid $1,280 for the 5,000 miles driven. If Able Transport uses the high-low method to analyze costs, how much would Able Transport pay in December, if they drove 6,000 miles?
Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the tour bus 4,000 miles and paid a total of $1,250 in March. In April, they paid $970 for 3.000 miles. What is the variable cost per mile if Able Transport uses the high-low method to analyze costs?
Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?
Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
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Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?
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Socrates Co. presently leases a copy machine under an agreement that calls for a fixed fee each month and a charge for each copy made. Socrates made 16,000 copies and paid a total of $460 in February; in April, the firm paid $390 for 11,000 copies. The company uses the high-low method to analyze costs. 1. Compute variable cost per copy and monthly fixed fee. 2. How much would Summit pay if it made 13,000 copies?
Markson and Sons leases a copy machine with terms that include a fixed fee each month plus a charge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. A) What is the variable cost per copy if Markson uses the high-low method to analyze costs? B) What is the total fixed fee if Markson uses the high-low method to analyze costs? C) Using the answers from A and B, complete the equation: Total cost= + x
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