Required Information [The following information applies to the questions displayed below.] Hardison Incorporated manufactures glass for office buildings in Florida. As a result of age and wear, a critical machine in the production process has begun to produce quality defects. Hardison is considering replacing the old machine with a new machine, either brand A or brand B. The manufacturer has provided Hardison with the following dats on the costs of operation of each machine brand at various levels of output: Output (square Brand A Estimated Brand 8 Estimated Total Costs Total Costs $ 180,500 128,500 183,500 228,500 283,500 450,180 yards) 2,000 4,000 8,000 16,000 32,000 64,000 Required: 2. Use the high-low method to determine the cost equation for each brand of machine and use the results to calculate the costs of operating each machine if Hardison's output is expected to be 25,000 square yards. 3. Using the high-low equations from requirement 2, calculate the costs of operating each machine if Hardison's output is expected to be 40,000 square yards and then for expected output of 60,000 square yards. 4. If Hardison's output is expected to be 40,000 square yards, which machine should it purchase? At 25,000 and at 60,000 square yards? Req 2 and 3 $ 123,500 163,500 Complete this question by entering your answers in the tabs below. 203,500 263,500 303,500 380,180 Req 4 2. Slope coefficient 2. Use the high-low method to determine the cost equation for each brand of machine and use the results to calculate the costs of operating each machine if Hardison's output is expected to be 25,000 square yards. (Enter your "Slope coefficient" answers to 2 decimal places.) 3. Using the high-low equations from requirement 2, calculate the costs of operating each machine if Hardison's output is expected to be 40,000 square yards and then for expected output of 60,000 square yards Fixed cost estimate Cost estimation: 25,000 square yards 3. Cost estimation: 40,000 square yards Cost estimation: 60,000 square yards Machine A Machine B Show less A

Required Information [The following information applies to the questions displayed below.] Hardison Incorporated manufactures glass for office buildings in Florida. As a result of age and wear, a critical machine in the production process has begun to produce quality defects. Hardison is considering replacing the old machine with a new machine, either brand A or brand B. The manufacturer has provided Hardison with the following dats on the costs of operation of each machine brand at various levels of output: Output (square Brand A Estimated Brand 8 Estimated Total Costs Total Costs $ 180,500 128,500 183,500 228,500 283,500 450,180 yards) 2,000 4,000 8,000 16,000 32,000 64,000 Required: 2. Use the high-low method to determine the cost equation for each brand of machine and use the results to calculate the costs of operating each machine if Hardison's output is expected to be 25,000 square yards. 3. Using the high-low equations from requirement 2, calculate the costs of operating each machine if Hardison's output is expected to be 40,000 square yards and then for expected output of 60,000 square yards. 4. If Hardison's output is expected to be 40,000 square yards, which machine should it purchase? At 25,000 and at 60,000 square yards? Req 2 and 3 $ 123,500 163,500 Complete this question by entering your answers in the tabs below. 203,500 263,500 303,500 380,180 Req 4 2. Slope coefficient 2. Use the high-low method to determine the cost equation for each brand of machine and use the results to calculate the costs of operating each machine if Hardison's output is expected to be 25,000 square yards. (Enter your "Slope coefficient" answers to 2 decimal places.) 3. Using the high-low equations from requirement 2, calculate the costs of operating each machine if Hardison's output is expected to be 40,000 square yards and then for expected output of 60,000 square yards Fixed cost estimate Cost estimation: 25,000 square yards 3. Cost estimation: 40,000 square yards Cost estimation: 60,000 square yards Machine A Machine B Show less A

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Hardison Incorporated manufactures glass for office buildings in Florida. As a result of age and wear, a critical machine in the production process has begun to produce quality defects. Hardison is considering replacing the old machine with a new machine, either brand A or brand B. The manufacturer has provided Hardison with the following date on the costs of operation of each machine brand at various levels of output: Output (square Brand A Estimated Brand 8 Estimated Total Costs $ 180,500 128,500 yards) 2,000 4,000 8,000 16,000 32,000 64,800 183,500 228,500 283,580 450,188 Required: 2. Use the high-low method to determine the cost equation for each brand of machine and use the results to calculate the costs of operating each machine if Hardison's output is expected to be 25,000 square yards. 3. Using the high-low equations from requirement 2, calculate the costs of operating each machine if Hardison's output is expected to be 40.000 square yards and then for expected output of 60,000 square yards. Req 2 and 3 Total Costs $ 123,500 4. If Hardison's output is expected to be 40,000 square yards, which machine should it purchase? At 25,000 and at 60,000 square yards? 163,500 203,508 263,500 303,500 380,180 Complete this question by entering your answers in the tabs below. 2. Slope coefficient Req 4 2. Use the high-low method to determine the cost equation for each brand of machine and use the results to calculate the costs of operating each machine if Hardison's output is expected to be 25,000 square yards. (Enter your "Slope coefficient" answers to 2 decimal places.) 3. Using the high-low equations from requirement 2, calculate the costs of operating each machine if Hardison's output is expected to be 40,000 square yards and then for expected output of 60,000 square yards Fixed cost estimate Cost estimation: 25,000 square yards 3. Cost estimation: 40,000 square yards Cost estimation: 60,000 square yards Machine A Machine B Show less A

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