A ezto.mheducation.comQuestionsO Mail - Thompsón, A..P Forgot Your Userna...Pro's Touch Landsc.Question 7- Chapt.UIRED Assignment Part 2 - Due 10/03 ..SavedExercise 5A-3 (Static) Cost Behavior; High-Low Method [LO5-10]Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven105,000 kilometers during a year, the average operating cost is 11.4 cents per kilometer. If a truck is driven only 70,000 kilometersduring a year, the average operating cost increases to 13.4 cents per kilometer.Required:1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated withthe fleet of trucks.2. Express the variable and fixed costs in the form Y = a + bX.3. If a truck were driven 80,000 kilometers during a year, what total operating cost would you expect to be incurred?Complete this question by entering your answers in the tabs below.Required 1Required 2Requited 3If a truck were driven 80,000 kilometers during a year, what total operating cost would you expect to be incurred? (Do notround intermediate calculations.)Total annual cost< Required 2Required 3( Prev7 of 7Next>MacBook Air

A fixed cost is an expense that remains constant while output volume rises or falls within a certain…

Answered: Exercise 5A-3 (Static) Cost Behavior;…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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TB MC Qu. 23-112 (Static) Pinkin Incorporated needs to determine a price... Pinkin Incorporated needs to determine a price for a new phone model. Pinkin desires a 25% markup on the total cost of the phone. Pinkin expects to sell 30,000 phones. Additional information is as follows: Variable Costs per Unit Direct materials Direct labor Overhead General and administrative Multiple Choice Using the total cost method what price should Pinkin charge? O O $156.10 $162.50 $130.10 Fixed Costs (total) O $142.50 O $161.25 $ 15 Overhead 49 General and administrative 20 50 $ 85,000 65,000
Exercise 20.8 (Static) Using Cost-Volume-Profit Formulas (LO20-4, LO20-5, LO20-6) Arrow Products typically earns a contribution margin ratio of 32 percent and has current fixed costs of $1,640,000. Arrow's general manager is considering spending an additional $100,000 per year to do one of the following: 1. Start a new ad campaign that is expected to increase sales revenue by 4 percent. 2. License a new computerized ordering system that is expected to increase Arrow's contribution margin ratio to 36 percent. Sales revenue for the coming year was initially forecast to equal $6,400,000 (that is, without implementing either of the above options). Required: a-1. Compute the projected operating income for each option? a-2. For each option, how much will projected operating income increase or decrease relative to initial predictions? b. By what percentage would sales revenue need to increase above the current level of $6,400,000 to make the ad campaign as attractive as the ordering system?…
Cost Behavior; High-Low Method Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 105,000 kilometers during a year, the average operating cost is 11.4 cents per kilometer. If a truck is driven only 70,000 kilometers during a year, the average operating cost increases to 13.4 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y = a + bX. 3. If a truck were driven 80,000 kilometers during a year, what total operating cost would you expect to be incurred?
Q.2 Swifty corporation has a weighted average unit contribution margin of $40 for its two products, Standard and Supreme….
Ef 19.
Problem 6-18 (Algo) Relevant Cost Analysis In a Variety of Situations [LO6-2, LO6-3, LO6-4] Andretti Company has a single product called a Dak. The company normally produces and sells 87,000 Daks each year at a selling price of $60 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 7.50 8.00 2.90 5.00 ($435,000 total) 2.70 2.50 ($217,500 total) $28.60 A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 1-a. Assume that Andretti Company has sufficient capacity to produce 113,100 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 30% above the present 87,000 units each year if it were willing to increase the fixed selling expenses by $110,000. What is the financial…
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Q25
8.5 Special order pricing Marston Manufacturing has an annual capacity of 85,000 units per year. Currently, the company is making and selling 78,000 units a year. The normal sales price is $120 per unit, cariable costs are $90 per unit, and total fixed expenses are $2,000,000. an out of state distributor has offered to buy 12,000 units at $105 per unit. Marston's cost structure should not change as the result of this special order. REQUIRED By how much will Marstonsincome change if the company accepts this order?
13. The Basheer Corporation has a breakeven point when sales are 100,000 units and Rs.320,000, and variable costs at that level of sales are Rs.200,000. How many additional units would have to be sold to reach a new breakeven point, if fixed costs doubled? А. 100,000. 120,000. 160,000. 325,000. В. С. D. 14. Cost that are identified with and traced to, one product or specific batch of products are called: А. ОН cost В. Indirect costs С. Fixed costs D. Direct costs
Ex.3.
806Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year’s plans call for a $200 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $270,000, up to a maximum capacity of 700,000 yards of rope. Forecasted variable costs are $140 per 100 yards of XT rope.RequiredEstimate Product XT’s break-even point in terms of (a) sales units and (b) sales dollars.Check (1a) Break-even sales, 4,500 unitsPrepare a contribution margin income statement showing sales, variable costs, and fixed costs for Product XT at the break-even point.

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