What is the estimated fixed cost? Delivery Dudes Services has the collected the followinginformation about operating expenditures for itsdelivery trucks for the past five years:Year Miles Operating costs2019 45,000 $185,0002020 60,000 $200,0002021 40,000 $170,0002022 55,000 $195,0002023 75,000 $215,150Using the high-low method, what is the estimated fixedcost for 2024 at an activity level of 50,000 miles?

Step 1: DefinitionsHigh-Low Method: The high-low method is a cost estimation technique used to…

Answered: Delivery Dudes Services has the…

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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Super Speedy Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years:YearMilesOperating Costs201655,000$195,000201770,000$210,000201850,000$180,000201965,000$205,000202085,000$225,150 Using the high-low method, what is the cost estimate for variable costs for 2021?Select one:A. $1.60B. $1.50C. $1.29D. $2.00
Super Speedy Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2016 55,000 $195,000 2017 70,000 $210,000 2018 50,000 $180,000 2019 65,000 $205,000 2020 85,000 $225,150 Using the high-low method, what is the cost estimate for fixed costs for 2021? Select one: Ο A. $109,650 O B. $115,500 0 C. $100,000 о D. $ 70,000
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The Apollo Delivery Service has the following information about its truck fleet miles and operating costs Year 2018 2019 2020 Miles 500,000 600,000 700,000 Operating Costs $320,000 $370,000 $420,000 What is the best estimate of fixed costs for fleet operating expenses using the high-low method? $100,000 $370,000 $70,000 $200,000
Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last three years. Number of Visitors per Year(thousands) Maintenance Costs($000) 1,830 $ 2,316 2,010 2,559 2,700 3,360 Required: a. Use the high-low method to estimate the fixed cost of maintenance annually and the variable cost of maintenance per visitor. (Enter your answers in dollars not in thousands of dollars. Round "Variable cost" answer to 2 decimal places.) b. The company expects a record 2,000,000 visitors next year. What would be the estimated maintenance costs? (Enter your answer in dollars not in thousands of dollars.)
Can you please give answer
The Bureau of Public Highways is considering two possible types of road surfacing with cost estimates per kilometer as follows: Турe A Туре В First Cost P500k P650k Resurfacing period 8 years 12 years Resurfacing Cost P200k P250k Average annual maintenance cost P15k P20k The periodic resurfacing do not include the base of the subgrade. Compare these types by calculating the present worth for 24 year service, with no salvage value at the end of this time using interest rate of 10%. What is the Present Worth of Alternative B?
It is desired to determine how much longer a forklift truck should remain in service before it is replaced by the new truck (challenger) for which data were given in the shown Table. The defender in this case is two years old, originally cost $19,500, and has a present realizable MV of $7,500. If kept, its MVs and annual expenses are expected to be as follows: Determine the most economical period to keep the defender before replacing it (if at all) with the present challenger of Example. The before -tax cost of capital (MARR) is 10% per year. A new forklift truck will require an investment of $30,000 and is expected to have year-end MVs and annual expenses as shown in columns 2 and 5, respectively, of Table. If the before-tax MARR is 10% per year,
Dunder Mifflin Paper Company is considering the following two alternatives. The cost information for the two proposals for replacing an equipment are provided are in table below. Machine A Machine B Initial cost $120,000 $96,000 $20,000 for the first 10 years $12,000 per year for 20 Benefits/year and $9,000 for the next 10 years. years Life 20 years for both Salvage value $40,000 $20,000 interest 8% per year for both The NPW of machine A is Choose the closest answer.
Shale Remodeling uses time and materials pricing. It is setting prices for next year using the following information: Labor rate, including fringe benefits $ 93 per hour Annual labor hours 6,410 hours Annual materials purchases $ 1,237,750 Materials purchasing, handling, and storage $ 247,550 Overhead for depreciation, taxes, insurance, etc. $ 711,510 Target profit margin for both labor and materials 25 % What is the total price for a project requiring 220 direct labor hours and $210,000 of materials

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