I need this question general accounting Fulton and Sons, Inc. presently leases a copy machine under an agreement that callsfor a fee each month and a charge for each copy made. Fulton made 7,000 copiesand paid a to $360 in March; in May, the firm paid $280 for 5,000 copies. Thecompany uses the high- method to analyze costs. Fulton's variable cost per copy is:A) $0.056B) $0.051C) $0.040D) $0.053E) None of the answers are correct.

Step 1: Define High-Low MethodThe high-low method of accounting attempts to break out fixed and…

Answered: Fulton and Sons, Inc. presently leases…

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...

See similar textbooks

Similar questions

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?
Cinnamon Depot bakes and sells cinnamon rolls for $1.75 each. The cost of producing 500,000 rolls in the prior year was: At the start of the current year, Cinnamon Depot received a special order for 18,000 rolls to be sold for $1.50 per roll. The company estimates it will incur an additional $1,000 in total fixed costs in order to lease a special machine that forms the rolls in the shape of a heart per the customers request. This order will not affect any of its other operations. Should the company accept the special order? (Show your work.)
Marcotti Cupcakes bakes and sells a basic cupcake for $1.25. The cost of producing 600,000 cupcakes in the prior year was: At the start of the current year, Marcotti received a special order for 15,000 cupcakes to be sold for $1.10 per cupcake. To complete the order, the company must incur an additional $700 in total fixed costs to lease a special machine that will stamp the cupcakes with the customers logo. This order will not affect any of Marcottis other operations and it has excess capacity to fulfill the contract. Should the company accept the special order? (Show your work.)
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?
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
Carr Company provides human resource consulting services to small- and medium-sized companies. Last year, Carr provided services to 600 clients. Total fixed costs were $224,000 with total variable costs of $75,000. Based on this information, complete the following chart: 400 clients 700 clients 800 clients Total costs Fixed costs Variable costs Total costs $4 $4 Cost per client Fixed cost $ Variable cost Total cost per client $ %24 %24 %24 %24 %24 %24 %24
Need help with this general accounting
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 and Markson paid $360 for 5,000 copies and $280 for 3,000 copies,
1. Fulton and Sons, Inc. presently leases a copy machine under an agreement that calls for a fixed fee each month and a charge for each copy made. Fulton made 7,000 copies and paid a total of $360 in March; in May, the firm paid $280 for 5,000 copies. The company uses the high-low method to analyze costs. How much would Fulton pay if it made 5,500 copies? a. $300. b. $322. c. $292.50. d. $382.50. e. None of the answers is correct. 2. The following data relate to the Torrence Company for May and August: May August Maintenance hours 25,000 29,000 Maintenance cost $ 1,175,000 $ 1,247,000 May and August were the lowest and highest activity levels, and Torrence uses the high-low method to analyze cost behavior. If maintenance hours are estimated to be 26,000 hours in October, which of the following statements is true? a. The fixed maintenance cost is $72,000 per month. b. The variable maintenance cost is $22 per hour. c. The variable…
Markson and Sons leases a copy machine with terms that include a fixed fee each month of $313 plus a charge for each copy made. The company uses the high-low method to analyze costs. If Markson paid a variable cost of $0.15, how much would Markson pay if it made 7,814 copies? Round to the nearest penny, two decimals.

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS