The cost data for Evencoat Paint for the year 2019 is as follows: 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 A. Using the high-low method, express the company’s maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Fixed cost $fill in the blank 1 Variable cost $fill in the blank 2 B. Predict the maintenance costs if 90,000 gallons of paint are produced. Maintenance cost $fill in the blank 3 C. Predict the maintenance costs if 81,000 gallons of paint are produced. Maintenance cost $fill in the blank 4 D. A scatter graph of the cost data is below. The relationship between gallons of paint produced and equipment maintenance expenses is:
The cost data for Evencoat Paint for the year 2019 is as follows: 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 A. Using the high-low method, express the company’s maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Fixed cost $fill in the blank 1 Variable cost $fill in the blank 2 B. Predict the maintenance costs if 90,000 gallons of paint are produced. Maintenance cost $fill in the blank 3 C. Predict the maintenance costs if 81,000 gallons of paint are produced. Maintenance cost $fill in the blank 4 D. A scatter graph of the cost data is below. The relationship between gallons of paint produced and equipment maintenance expenses is:
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:
| 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 |
A. Using the high-low method, express the company’s maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs.
Fixed cost $fill in the blank 1
Variable cost $fill in the blank 2
B. Predict the maintenance costs if 90,000 gallons of paint are produced.
Maintenance cost $fill in the blank 3
C. Predict the maintenance costs if 81,000 gallons of paint are produced.
Maintenance cost $fill in the blank 4
D. A scatter graph of the cost data is below.
The relationship between gallons of paint produced and equipment maintenance expenses is:
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