Need help please Oak Island Amusements Center provides the following data onthe costs of maintenance and the number of visitors for thelast three years.Number of Visitors per YearMaintenance Costs(thousands)($000)1,865$3,5472,045$3,8983,400$6,310Required:a. Use the high-low method to estimate the fixed cost ofmaintenance annually and the variable cost of maintenanceper visitor.b. The company expects a record 2,700,000 visitors next year.What would be the estimated maintenance costs?

a:High-Low Method:Identify the highest and lowest levels of activity (number of visitors):Highest…

Answered: Oak Island Amusements Center provides…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

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Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last three years. Number of Visitors per Year(thousands) Maintenance Costs($000) 1,830 $ 2,316 2,010 2,559 2,700 3,360 Required: a. Use the high-low method to estimate the fixed cost of maintenance annually and the variable cost of maintenance per visitor. (Enter your answers in dollars not in thousands of dollars. Round "Variable cost" answer to 2 decimal places.) b. The company expects a record 2,000,000 visitors next year. What would be the estimated maintenance costs? (Enter your answer in dollars not in thousands of dollars.)
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A general manager wants to know the economic service life of currently owned machines. The market value of the machines and the maintenance and operating costs are shown below. Use the company’s MARR of 15% per year to determine the ESL. Year Market Value Annual Cost Total Annual Worth 0 $40,000 N/A N/A 1 $30,000 $20,000 -$36,000 2 $25,000 $22,000 -$33,907 3 $12,000 $24,000 4 $2,000 $26,000 -$36,263
Ultrasonic Company manufactures ultrasound equipment. Based on past experience, Ultrasonic has found that total annual repair and maintenance cost can be represented by the following formula: Total annual repair and maintenance cost = $205,000 + $7.50x, where x = machine hours. Last year, Ultrasonic incurred 145,000 machine hours. A. What was the total repair and maintenance cost incurred by Ultrasonic last year?fill in the blank 1 of 6$ B. What was the total fixed repair and maintenance cost incurred by Ultrasonic last year?fill in the blank 2 of 6$ C. What was the total variable repair and maintenance cost incurred by Ultrasonic last year?fill in the blank 3 of 6$ D. What was the total repair and maintenance cost per machine hour last year? (Round answer to two decimal places.)fill in the blank 4 of 6$ E. What was the fixed repair and maintenance cost per machine hour last year? (Round answer to two decimal places.)fill in the blank 5 of 6$ F. What was the variable repair…
Predict the level of maintenance cost that would be incurred during a month when 22,000 tour miles are driven.
How to solve this question on excel using excel formulas?
H. The Retread Tire Company recaps tires. The fixed annual cost a tire is $9.00. The company charges $25 to recap a tire. the recapping operation is $60,000. The variablec ost or recapping a) For an annual volume of 12,000 tires, determine the total cost, total revenue, and profit. b) Determine the annual break-even volume for the Retread Tire Company operation. c) Determine the contribution margin. d) If the maximum operating capacity of the Retread Tire Company, is 8,000 tires annually, determine the break-ev percentage of that capacity. en volume as a Fixed cost = Variable cost = In the Formula, box type in the formula in word calculate the answer. s that you used to Price = a) V= TC= TR= Formula: Fomula: Fomula: Profit= per year b) V = tires per year Fomula: c) What is the Contribution Margin? Fomula: d) сарасity%3D % cf capacity = Fomula:
Describe the cost formula for a strictly fixed cost such as depreciation of 15,000 per year.
Jensen Tire Auto is deciding whether to purchase a maintenance contract for its new computer wheel alignment and balancing machine. Managers feel that maintenance expense should be related to usage, and they collected the following information on weekly usage (hours) and annual maintenance expense (in hundreds of dollars). a. Develop a scatter chart with weekly usage hours as the independent variable. What does the scatter chart indicate about the relationship between weekly usage and annual maintenance expense? b. Use the data to develop an estimated regression equation that could be used to predict the annual maintenance expense for a given number of hours of weekly usage. What is the estimated regression model? c. Test whether each of the regression parameters 0 and 1 is equal to zero at a 0.05 level of significance. What are the correct interpretations of the estimated regression parameters? Are these interpretations reasonable? d. How much of the variation in the sample values of annual maintenance expense does the model you estimated in part (b) explain? e. If the maintenance contract costs 3,000 per year, would you recommend purchasing it? Why or why not?
The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is $60,000. The variable cost of recapping a tire is $9. The company charges $25 to recap a tire. a. For an annual volume of 12,000 tires, determine the total cost, total revenue, and profit. b. Determine the annual break-even volume for the Retread Tire Company operation.

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