The cost data for Evencoat Paint for the year 2019 is as follows: Evencoat Paint data Month Gallons of Paint Produced Equipment Maintenance Expenses January 110,000 $70,700 February 68,000 66,800 March 71,000 67,000 April 77,000 68,100 May 95,000 69,200 June 101,000 70,300 July 125,000 70,400 August 95,000 68,900 September 95,000 69,500 October 89,000 68,600 November 128,000 72,800 December 122,000 71,450 Using the high-low method, express the company’s maintenance costs as an equation where x represents the gallons of paint produced. Y=$ + x What are the fixed costs? What are the variable costs per gallon of paint produced? Predict the maintenance costs if 90,000 gallons of paint are produced. Predict the maintenance costs if 81,000 gallons of paint are produced.
The cost data for Evencoat Paint for the year 2019 is as follows: Evencoat Paint data Month Gallons of Paint Produced Equipment Maintenance Expenses January 110,000 $70,700 February 68,000 66,800 March 71,000 67,000 April 77,000 68,100 May 95,000 69,200 June 101,000 70,300 July 125,000 70,400 August 95,000 68,900 September 95,000 69,500 October 89,000 68,600 November 128,000 72,800 December 122,000 71,450 Using the high-low method, express the company’s maintenance costs as an equation where x represents the gallons of paint produced. Y=$ + x What are the fixed costs? What are the variable costs per gallon of paint produced? Predict the maintenance costs if 90,000 gallons of paint are produced. Predict the maintenance costs if 81,000 gallons of paint are produced.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The cost data for Evencoat Paint for the year 2019 is as follows:
Evencoat Paint data
| Month | Gallons of Paint Produced | Equipment Maintenance Expenses |
|---|---|---|
| January | 110,000 | $70,700 |
| February | 68,000 | 66,800 |
| March | 71,000 | 67,000 |
| April | 77,000 | 68,100 |
| May | 95,000 | 69,200 |
| June | 101,000 | 70,300 |
| July | 125,000 | 70,400 |
| August | 95,000 | 68,900 |
| September | 95,000 | 69,500 |
| October | 89,000 | 68,600 |
| November | 128,000 | 72,800 |
| December | 122,000 | 71,450 |
- Using the high-low method, express the company’s maintenance costs as an equation where x represents the gallons of paint produced. Y=$ + x What are the fixed costs? What are the variable costs per gallon of paint produced?
- Predict the maintenance costs if 90,000 gallons of paint are produced.
- Predict the maintenance costs if 81,000 gallons of paint are produced.
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