Delta Inc. reported: • Total cost of $30 per unit at 12,000 units (lowest level) Total cost of $18 per unit at 24,000 units (highest level) Required: Use the high-low method to estimate the variable cost per unit.

Delta Inc. reported: • Total cost of $30 per unit at 12,000 units (lowest level) Total cost of $18 per unit at 24,000 units (highest level) Required: Use the high-low method to estimate the variable cost per unit.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7E: High-low method Ziegler Inc. has decided to use the high-low method to estimate the total cost and...

See similar textbooks

Related questions

Q: Please provide the accurate answer to this general accounting problem using appropriate methods.

A: Step 1: Definition of Net IncomeNet Income is the amount of profit that remains after subtracting…

Q: Can you help me solve this general accounting problem using the correct accounting process?

A: Step 1: Definition of P/E RatioThe Price-to-Earnings (P/E) ratio is a measure of the price of a…

Q: Can you help me solve this financial accounting question using valid financial accounting…

A: Step 1: Definition of Cost per Equivalent Unit (FIFO Method)Under the FIFO method, only the costs…

Q: I am searching for the accurate solution to this financial accounting problem with the right…

A: Step 1: Definition of Free Cash Flow (FCF)Free Cash Flow (FCF) represents the amount of cash a…

Q: Please provide the correct answer to this general accounting problem using valid calculations.

A: Step 1: Definition of GoodwillGoodwill is an intangible asset that arises when a company acquires…

Q: Financial Accounting Question

A: To calculate Trent's realized gain on the sale of the bakery facility, use the formula: Realized…

Q: I am searching for the correct answer to this general accounting problem with proper accounting…

A: Step 1: Definition of Accounts Receivable Days OutstandingAccounts Receivable Days Outstanding, also…

Q: I am looking for help with this general accounting question using proper accounting standards.

A: To calculate Operating Leverage, we use the formula:Operating Leverage = Contribution Margin /…

Q: General accounting question

A: Step 1: Definition of High-Low MethodThe high-low method is used to estimate the variable and fixed…

Q: The audited accounts of Rattle Limited for year-end December 31, 2013, show a profit of $2,400,000…

A: To compute Rattle Ltd.'s corporate tax liability, we must: 1. Start with the accounting…

Q: I need the correct answer to this general accounting problem using the standard accounting approach.

A: Step 1: Definition of High-Low MethodThe high-low method is a technique used to separate fixed and…

Q: Can you solve this financial accounting problem using accurate calculation methods?

A: Step 1: Definition of After-Tax Cost of DebtThe After-Tax Cost of Debt is the effective interest…

Q: What is the company's working capital is?

A: Explanation of Current Assets:Current assets are the resources a company expects to convert into…

Q: I need help with this problem and accounting question

A: Step 1: Definition of MarginMargin refers to the percentage of sales revenue that results in…

Q: Please provide the answer to this general accounting question using the right approach.

A: Step 1: Definition of Current RatioThe Current Ratio is a liquidity ratio that measures a company's…

Q: Please provide the answer to this general accounting question using the right approach.

A: Step 1: Definition of Underwriter's SpreadThe underwriter's spread is the difference between the…

Q: What is the operating cash flow ?

A: Step 1: Calculate Sales Revenue Sales Revenue = $720,000 Step 2: Calculate Variable Costs Variable…

Q: Please provide the accurate solution to this financial accounting question using valid calculations.

A: To calculate the ending balance of accounts payable, use the following formula:Ending Accounts…

Q: Please explain the solution to this general accounting problem using the correct accounting…

A: Step 1: Definition of Shareholders' Equity and Net Working CapitalShareholders' equity represents…

Q: None

A: Return on Equity (ROE) = Profit Margin * Total Asset Turnover * Equity MultiplierReturn on Equity…

Q: I need help with this solution and accounting question

A: Step 1: Definition of Sales (Based on Gross Profit and COGS Percentage)Sales represent the total…

Q: Please provide problem with accounting question

A: Step 1: Definition of After-Tax LossAfter-tax loss refers to the financial loss remaining after…

Q: Vampire Co. reports total sales of $610,000. Variable costs are 58% of sales, and fixed costs are…

A: To calculate the contribution margin ratio, use the formula: Contribution Margin Ratio = (Sales -…

Q: I am looking for the correct answer to this general accounting question with appropriate…

A: Step 1: Define Total LiabilitiesTotal liabilities represent the financial obligations a business…

Q: Can you solve this financial accounting problem using accurate calculation methods?

A: Step 1: Definition of Cash BalanceThe cash balance refers to the amount of cash a business has on…

Q: Please provide the answer to this general accounting question using the right approach.

A: Step 1: Definition of Net Income / Net LossNet income is the profit a business earns after…

Q: I am searching for a clear explanation of this financial accounting problem with valid methods.

A: Step 1: Define Cost of EquityCost of equity is the return that investors expect for investing in a…

Q: I need help finding the accurate solution to this general accounting problem with valid methods.

A: Step 1: Definition of Operating Cash Flow (OCF) Operating Cash Flow (OCF) is the amount of cash…

Q: MCQ

A: 1. Stepwise Explanation of the Formula of Raw Materials Used:The raw materials consumed within a…

Q: Solution and accounting question

A: Step 1: Definition of Return on Investment (ROI) and DuPont FormulaReturn on investment (ROI)…

Q: 1. Jack Fields opened his place of business in Jamaica at 8:00 am. Within fifteen minutes of…

A: Note: Hello, student. I sincerely hope I was able to answer your question. If you have any more…

Q: The merchandise inventory of sunny retailer was destroyed by fire on November 20.

A: Concept of Beginning Inventory:Beginning inventory refers to the value of goods available for sale…

Q: Please provide the accurate answer to this general accounting problem using appropriate methods.

A: Step 1: Definition of Net Income in Relation to Retained EarningsNet income is the profit a company…

Q: Please explain the correct approach for solving this general accounting question.

A: Step 1: Definition of Contribution Margin RatioThe contribution margin ratio is a financial metric…

Q: What is the gross profit. Accounting

A: Step 1: Definition of Gross Profit PercentageGross profit percentage is a financial ratio that…

Q: I need guidance with this financial accounting problem using the right financial principles.

A: To figure out how much cash the business collected from customers during the month, we use this…

Q: Please help me solve this general accounting question using the right accounting principles.

A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is the rate at…

Q: Please explain the solution to this general accounting problem with accurate explanations.

A: Step 1: Definition of Budgeted Cash CollectionsBudgeted cash collections refer to the total amount…

Q: General accounting question

A: Step 1: Definition of Total Asset Turnover RatioThe asset turnover ratio measures how efficiently a…

Q: Please help me solve this general accounting problem with the correct financial process.

A: Step 1: Definition of High-Low MethodThe High-Low Method is a technique used in cost accounting to…

Q: Need help with this general accounting question

A: Step 1: Define Traditional CostingTraditional costing allocates overhead based on a single cost…

Q: At the beginning of the year, Alamo Trading's liabilities equal $125,000. During the year, assets…

A: Explanation of Equity:Equity represents the owner's residual interest in a business after all…

Q: I am looking for the correct answer to this financial accounting question with appropriate…

A: Step 1: Definition of Direct Labour Time VarianceDirect labour time (or efficiency) variance…

Q: The cash proceeds received by the seller are?

A: Explanation of Sales Allowance:A sales allowance is a reduction in the selling price of goods,…

Q: I need help with this general accounting problem using proper accounting guidelines.

A: Step 1: Definition of Overhead AppliedOverhead applied is the portion of total manufacturing…

Q: I want financial accounting question answer do fast

A: Step 1: Define Total LiabilitiesTotal liabilities refer to all the financial obligations a company…

Q: I am trying to find the accurate solution to this financial accounting problem with the correct…

A: Step 1: Definition of Total Manufacturing CostsTotal Manufacturing Costs represent the complete cost…

Q: I am looking for the correct answer to this general accounting question with appropriate…

A: Step 1: Definition of Book Value per ShareBook value per share represents the value of a company's…

Q: Please explain the solution to this general accounting problem using the correct accounting…

A: Step 1: Definition of Credit SalesCredit sales refer to the amount of sales made by a business on…

Q: Tutor Need Your Help

A: Explanation of Revaluation Model:The revaluation model is an accounting method under IAS 16 that…

Question

100%

Please solve required this question general accounting and given fast explanation

Delta Inc. reported:
•
Total cost of $30 per unit at 12,000 units (lowest level)
Total cost of $18 per unit at 24,000 units (highest level)
Required:
Use the high-low method to estimate the variable cost per unit.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Evander Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 770 $120,960 1,470 136,010 2,170 188,160 a. Determine the variable cost per unit and the total fixed cost.Variable cost fill in the blank 1 of 2$Total fixed cost fill in the blank 2 of 2$ b. Based on part (a), estimate the total cost for 1,060 units of production.Total cost for 1,060 units fill in the blank 1 of 1$
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% %
Owe
Please give me answer general accounting
Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 1,400 $302,400 2,740 425,040 4,200 470,400 a. Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) $fill in the blank 1 per unit Total fixed cost: $fill in the blank 2 b. Based on part (a), estimate the total cost for 2,020 units of production. Total cost for 2,020 units: $fill in the blank 3
Using the costs data from Rose Company, answer the following questions: A. If 15,000 units are produced, what is the variable cost per unit? B. If 28,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs?
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.
Determine this one
I need answer of this question
Need ANSWER please provide Solutions
Pharoah Company has a unit selling price of $576, variable costs per unit of $324, and fixed costs of $183,456. Compute the break-even point in units using (a) the mathematical equation and (b) unit contribution margin. Break-even point (a) Mathematical Equation (b) Unit contribution margin units units
Solve this one