Neptune Rentals operates a boat rental service. Consider the following costs of the company over the relevant range of 5,000 to 8,000 hours of operating time for its boats:Hours of Operating Time5,000 6,000 7,000 8,000Total costs:Variable costs ............... $ 20,000 $ ? $ ? $ ?Fixed costs ................... 168,000 ? ? ?Total costs ....................... $188,000 $ ? $ ? $ ?Cost per hour:Variable cost ................. $ ? $ ? $ ? $ ?Fixed cost ..................... ? ? ? ?Total cost per hour ........... $ ? $ ? $ ? $ ?Required:Compute the missing amounts, assuming that cost behavior patterns remain unchanged within the relevantrange of 5,000 to 8,000 hours.
Neptune Rentals operates a boat rental service. Consider the following costs of the company over the relevant range of 5,000 to 8,000 hours of operating time for its boats:
Hours of Operating Time
5,000 6,000 7,000 8,000
Total costs:
Variable costs ............... $ 20,000 $ ? $ ? $ ?
Fixed costs ................... 168,000 ? ? ?
Total costs ....................... $188,000 $ ? $ ? $ ?
Cost per hour:
Variable cost ................. $ ? $ ? $ ? $ ?
Fixed cost ..................... ? ? ? ?
Total cost per hour ........... $ ? $ ? $ ? $ ?
Required:
Compute the missing amounts, assuming that cost behavior patterns remain unchanged within the relevant
range of 5,000 to 8,000 hours.
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