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Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.64 per mile driven. Joyce has determined that if she drives 2,350 miles in a month, her total operating cost is $675. If she drives 3,450 miles in a month, her total operating cost is $939.
Required:
1. Using the high-low method, determine Joyce’s variable and fixed operating cost components.
2. Complete the contribution margin income statement for Joyce’s service assuming she drove 1,500 miles last month. (Assume this falls within the relevant range of operations).
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- Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.60 per mile driven. Joyce has determined that if she drives 2,400 miles in a month, her total operating cost is $700. If she drives 3,500 miles in a month, her total operating cost is $810. Required: 1. Using the high-low method, determine Joyce's variable and fixed operating cost components. 2. Complete the contribution margin income statement for Joyce's service assuming she drove 1,550 miles last month. (Assume this falls within the relevant range of operations). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the high-low method, determine Joyce's variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal places.) Variable Cost per Mile Driven Fixed CostBethany Link delivers parts for several local auto parts stores. She charges clients $1.73 per mile driven. She has determined that if she drives 1,400 miles in a month, her average operating cost is $1.53 per mile. If Bethany drives 2,800 miles in a month, her average operating cost is $0.90 per mile. Required: 1. Using the high-low method, determine Bethany's variable and fixed operating cost components. 2. Complete the contribution margin income statement for the business last month, when Bethany drove 1,540 miles. (Assume this falls within the relevant range of operations). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the high-low method, determine Bethany's variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal places.)JPAK manufactures and sells mountain bikes. It operates eight hours a day, five days a week. Using this information,classify each of the following costs as fixed or variable with respect to the number of bikes made. Taxes on property
- Using the high-low method Mark, owns a machine shop. In reviewing the shop’s utility bills for the past 12 months, he found that the highest bill of $2,600 occurred in August when the machines worked 1,200 machine hours. The lowest utility bill of $2,300 occurred in December when the machines worked 600 machine hours. Requirements Use the high—low method to calculate the variable cost per machine hour and the total fixed utility cost. Show the equation for determining the total utility cost for the machine shop. If Mark anticipates using 800 machine hours in January, predict the shop’s total utility bill using the equation from Requirement 2.In my accounting class I am learning how to prepare contribution margin income statements. I am having trouble learning how to calculate variable costs, fixed cost per unit, variable cost per unit, and fixed costs per year. Is there a special equation I should usePlease help me
- Best Windows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation Variable cost of each window installation Annual fixed costs $ $ $ 160,000 Use (a) the equation method and (b) the contribution method to calculate operating income if Best installs 4,000 windows. Use (a) the Equation method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the equation method. Then, calculate the operating income. (Abbreviation used: FC = Fixed costs, SP = Selling price, VCU = Variable cost per unit, Q = Quantity of units sold.) X X )-( )-( X X 700 600 X = Operating income = Next, use (b) the contribution method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the contribution method. Then, calculate the operating income. = Operating incomeS Presidio, Incorporated, produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidio's cost data table. 2. Calculate Presidio's contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $650. 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $650. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete Presidio's cost data table. Note: Round your Cost per Unit answers to 2 decimal places. Bikes Produced and Sold 740 Units 890 Units 1,112 Units Total costs Variable costs $ 185,000 Fixed costs per year Total costs $ 185,000 $ 0 $ 0 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 0.00 $ 537.00 $ 0.00Presidio, Incorporated, produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidio's cost data table. 2. Calculate Presidio's contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $630. 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $630. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete Presidio's cost data table. Note: Round your Cost per Unit answers to 2 decimal places. Bikes Produced and Sold 730 Units 750 Units 1,260 Units Total costs Variable costs $ 182,500 Fixed costs per year Total costs $ 182,500 $ 0 $ 0 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 0.00 $ 558.00 $ 0.00
- Presidio, Incorporated, produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidio's cost data table. 2. Calculate Presidio's contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $630. 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $630. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete Presidio's cost data table. Note: Round your Cost per Unit' answers to 2 decimal places. Bikes Produced and Sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 720 Units 890 Units 1,902 Units $ 187,200 187,200 $ 0 $ 0 $ 0.00 Required 1 543.00 $ 0.00 Required 2 >Presidio, Inc., produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidio's cost data table. 2. Calculate Presidio's contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $630. 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $630. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.) Bikes Produced and Sold 730 Units 810 Units 1,402 Units Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit S 189,800 S S 189,800 $ 0.00 $ 0 S 536.00 S Required 1 0 0.00 Required 2 >Presidio, Inc., produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidio's cost data table. 2. Calculate Presidio's contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $640. 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $640. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete Presidio's cost data table. (Round your Cost per Unit answers to 2 decimal places.) Bikes Produced and Sold 730 Units 790 Units 1,944 Units Total costs Variable costs $ 189,800 Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 549.00 Required 1 Required 2 Required 3 Calculate Presidio's contribution margin ratio and its total contribution margin at each sales level indicated in the cost data…
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