Georgia uses the high-low method ofestimating costs. Georgia had total costsof $16,100 at its lowest level of activity,when 5,500 units were sold. When, at itshighest level of activity, sales equaled18,300 units, total costs were $80,100.Georgia would estimate variable costper unit as:Multiple Choice• $5.00• $2.93• $4.04$4.38

Variable cost means the cost which vary with the level of output where as fixed cost remains fixed…

Answered: Georgia uses the high-low method of…

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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Your Answer Correct Answer Your answer is incorrect. Sandhill Company has a unit selling price of $392, unit variable costs of $272, and fixed costs of $206,400. Compute the break-even point in units using (a) the mathematical equation and (b) unit contribution margin. (a) Break-even point (b) Break-even point units units
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Scenario: Emporia Hornets Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units When Emporia Hornets produces and sells 25,000 units, its unit costs are as shown in the table below: (Hint 1: within the relevant range, variable and fixed costs behave consistently. For example, a unit variable cost would be constant but a total variable cost would vary, and a unit fixed cost would vary but a total fixed cost would be constant. Hint 2: Each of the unit fixed costs in the table below are the average fixed manufacturing costs per unit when the production level is at 25,000 units. An average fixed cost per unit is the total fixed cost divided by the total number of units produced. You will need to compute a total fixed cost for each fixed cost item first and then to calculate a total fixed manufacturing cost, a total fixed period cost, or both.) Amount Per…
Consider the following: (Click the icon to view the cases.) Requirement 1. Fill in the blanks for each of the independent cases. (a) Selling Price (b) (c) (d) (e) (f) Variable Cost Total Total Contribution Total Fixed Case per Unit per Unit Units Sold Margin Costs Net Income 12345 £ 25 128,000 £ 1,024,000 £ 953,000 13 4 100.000 823,000 22 13 243,000 13,000 29 23 65,000 25,000 12 80.000 240,000 192,000
If variable manufacturing costs are $13 per unit and total fixed manufacturing costs are $198,900, what is the manufacturing cost per unit if: a. 3,900 units are manufactured and the company uses the variable costing concept?$fill in the blank 1 b. 5,100 units are manufactured and the company uses the variable costing concept?$fill in the blank 2 c. 3,900 units are manufactured and the company uses the absorption costing concept?$fill in the blank 3 d. 5,100 units are manufactured and the company uses the absorption costing concept?$fill in the blank 4
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Using the high low method, Hadley Company calculated the variable cost as $2.5 per unit. The high level of the activity was 2320 units and $38325 of total cost. Total fixed costs equal $ your answer as a whole number. 32.525 Moving to another question will save this response. Ent << Question 4 of
Bruno Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost January 8,015 February 7,510 $14,195 13,515 Miles Driven Total Cost March 8,500 $15,000 April 8,205 14,495 a. Compute the variable cost per mile using the high-low method. b. Compute the fixed cost elements using the high-low method.
What is correct option? No plagiarism please
Calculate per-unit costs and compare to last year. Are the reduced unit costs for Product A due to scale or scope? Product A last year Product B last year Units Production Cost Marketing Cost 100 50 200 80 2.5 4 Units Production Cost Marketing Cost Product A coming year 150 150 40 Product B coming year 200 80 2 3.2 a. The reduced per unit costs for product A are due to scale b. The reduced per unit costs for product A are due to scope c. We cannot be certain whether the reduced per unit costs for product A are due to scale or scope. d. The reduced per unit costs for product A are due to both scale and scope

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