Select the graph that matches the numbered manufacturing cost data. Indicate by letter which graph best fits the situation or item described. W (Click to view the graphs.) The vertical axes of the graphs represent total cost, and the horizontal axes represent units produced during a calendar year. In each case, the zero point of dollars and production is at the intersection of the two axes. The graphs m more than once. 1. Annual depreciation of equipment, where the amount of depreciation charged is computed by the - X Graph/chart machine-hours method. 2. Electricity bill - a flat fixed charge, plus a variable cost after a certain number of kilowatt-hours are used, in which the quantity of kilowatt-hours used varies proportionately with quantity of units produced. 3. City water bill, which is computed as follows: First 1,000,000 gallons or less $1,000 flat fee Next 10,000 gallons $0.003 per gallon used Next 10,000 gallons $0.006 per gallon used Next 10,000 gallons $0.009 per gallon used and so on and so on H The gallons of water used vary proportionately with the quantity of production output. 4. Cost of direct materials, where direct material cost per unit decreases with each pound of material used (for
Select the graph that matches the numbered manufacturing cost data. Indicate by letter which graph best fits the situation or item described. W (Click to view the graphs.) The vertical axes of the graphs represent total cost, and the horizontal axes represent units produced during a calendar year. In each case, the zero point of dollars and production is at the intersection of the two axes. The graphs m more than once. 1. Annual depreciation of equipment, where the amount of depreciation charged is computed by the - X Graph/chart machine-hours method. 2. Electricity bill - a flat fixed charge, plus a variable cost after a certain number of kilowatt-hours are used, in which the quantity of kilowatt-hours used varies proportionately with quantity of units produced. 3. City water bill, which is computed as follows: First 1,000,000 gallons or less $1,000 flat fee Next 10,000 gallons $0.003 per gallon used Next 10,000 gallons $0.006 per gallon used Next 10,000 gallons $0.009 per gallon used and so on and so on H The gallons of water used vary proportionately with the quantity of production output. 4. Cost of direct materials, where direct material cost per unit decreases with each pound of material used (for
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 40P
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