e 5A-3-Con x +mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https% 253A%252F%252Fmycstate.cincinnatistate.edu%252FwebaHoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven159,000 kilometers during a year, the average operating cost is 12.7 cents per kilometer. If a truck is driven only 106,000 kilometersduring a year, the average operating cost increases to 15.8 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 132,000 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 1 Required 2Required 3Variable costFixed costUsing the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associatedwith the fleet of trucks. (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimalplaces.)per kilometerper yearRequired 1SavedQ SearchRequired 2 >Prev1 of 1Next >a99+

Variable cost is the cost that changes with change in the activity of cost driver used. The variable…

Answered: Hoi Chong Transport, Limited, operates…

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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Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 162,000 kilometers during a year, the average operating cost is 13.2 cents per kilometer. If a truck is driven only 108,000 kilometers during a year, the average operating cost increases to 16.6 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 135,000 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 1 Required 2 Variable cost Fixed cost Required 3 Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. (Do not round your…
Sheridan Recreation Products sells the Amazing Foam Frisbee for $19. The variable cost per unit is $6; fixed costs are $26,000 per month. (a) Your Answer Correct Answer Your answer is correct. What is the breakeven point in units? In sales dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars. Round answers to O decimal places, eg. 5,275) The breakeven point The breakeven sales (b) eTextbook and Media Solution $ eTextbook and Media Save for Later 2000 frisbees 38000 How many frisbees must Sheridan sell to earn $39,000 in monthly operating income? (Round answer to O decimal places, eg. 5,275) frisbees Attempts: unlimited Attempts: unlimited Submit Ar (c) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the part above.
Company produces three products with the following information: Selling price per unit Variable cost per unit Machine-hours per unit (MH/unit) Small $17 $8 2 Q) What is the maximum monthly rent the " optimal use of their own machine)? A) $ Product Medium $19 $10 3 Large $26 $12 4 The company has a limit of 14,300 machine-hours available per month and a monthly fixed cost of $11,000. The demand for each of the products is 2,500 units per month. The company's goal is to maximize its profitability. Suppose the Company can rent a machine that will provide an additional 1,360 machine-hours per month. company should be willing to pay for this machine (assuming they've made
Teh Teratai Sdn. Bhd. involved in making and distributing its herbal tea product, Hebat inBandar Tengah. Its annual fixed cost is RM162,000, where RM130, 000 is for theadministration and distribution effort involved in selling the products. The sales manager istargeting a total of 35, 000 boxes would be sold per year. The variable cost for processing isRM2 per box and its variables sales expense is 30 percent of the selling price. There will beno administrative cost incurred. The management is targeting a profit of RM160, 000 for thecurrent year. (a) Based on the above information, determine the selling price of one box of Hebat. (b) There are several reasons for cost - based approach of a product to become popular andimportant in pricing decision. Discuss these reasons.
Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics: Sales price $ 12.00 per case Variable costs 5.50 per case Fixed costs 403,000 per year Assume that the company plans to sell 77,000 units annually. Consider requirements (b), (c), and (d) independently of each other. Required: What will be the operating profit? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? Note: Do not round intermediate calculations. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 10 percent? Note: Do not round intermediate calculations. Suppose that fixed costs for the year are 20 percent lower than projected and variable costs per unit are 20 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? Note: Do not round intermediate…
Tiktok Company distributes a lightweight lawn chair that sell for P150 per unit. Variable costs are P60 per unit, and fixed costs total P1,800,000 annually. The company estimates that sales will increase by P450,000 during the coming year due to increased demand. Required: By how much should net income increase?
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The background information is provided in the image attached. Solve the following: g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit and thebreak-even point:(i) Sales volume increases(ii) Total fixed cost decreases(iii) Selling price per unit increases(iv) Variable cost per unit increases
Amarjit Truckers, Ltd. operates a fleet of delivery trucks in North America. The company has determined that, if a truck is driven 120,000 kilometres during a year, the average operating cost is 18.000 cents per kilometre. If a truck is driven only 50,000 kilometres during a year, the average operating cost increases to 21.0 cents per kilometre. Required: 1. Using the high - low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (Do not round intermediate calculations. Round the "Variable cost" to 5 decimal places. Round "Fixed cost" to 2 decimal places.) 2. Express the variable and fixed costs in the form Y = a + bX. (Do not round intermediate calculations. Round the "Variable cost" to 5 decimal places. Round "Fixed cost" to 2 decimal places.) 3. If a truck were driven 80,000 kilometres during a year, what total cost would you expect to be incurred? (Do not round intermediate calculations. Round "Total annual cost" to 2 decimal places.)

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