The following costs were for Handle Bar Incorporated, a bicycle manufacturer that uses the high-low method.Output960Fixed Costs$ 33,000Total Costs$ 159,7201,010.$ 33,000$ 166,3201,060$ 33,000$ 172,9201,110$ 33,000$ 179,520At an output level of 1.320 bicycles, per unit total cost is calculated to beMultiple Choice$132.00$133.50O $157,00O $161.73.$186.70Variable Costs$ 126,720$ 133,320$ 139,920$ 146,520

High low method is one of the method used for cost estimation purpose. Under this, variable cost per…

The following costs were for Handle Bar Incorporated, a bicycle manufacturer that uses the high-low method: Output 960 Fixed Costs $ 33,000 $ 33,000 1,010 1,060 $ 33,000 1,110 $ 33,000 At an output level of 1.320 bicycles, per unit total cost is calculated to be Multiple Choice $132.00 O $133.50 O $15700 $161.73 $186.70 Variable Costs $ 126,720 $ 133,320 $ 139,920 $ 146,520 Total Costs $ 159,720 $ 166,320 $ 172,920 $ 179,520

The following costs were for Handle Bar Incorporated, a bicycle manufacturer that uses the high-low method: Output 960 Fixed Costs $ 33,000 $ 33,000 1,010 1,060 $ 33,000 1,110 $ 33,000 At an output level of 1.320 bicycles, per unit total cost is calculated to be Multiple Choice $132.00 O $133.50 O $15700 $161.73 $186.70 Variable Costs $ 126,720 $ 133,320 $ 139,920 $ 146,520 Total Costs $ 159,720 $ 166,320 $ 172,920 $ 179,520

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following costs were for Bikeway Inc., a bicycle manufacturer that uses the high-low method: Fixed Variable Total Output Costs Costs Costs $ 25,000 $ 25,000 $ 25,000 $ 25,000 800 $80,000 $105,000 $ 85,000 $ 90,000 $ 95,000 850 $110,000 900 $115,000 950 $120,000 At an output level of 1,000 bicycles, per unit total cost is calculated to be:
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Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold Total costs 460 750 910 Variable costs $110,860 $ ? Fixed costs per year Total costs ? ? Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit ? ? ? ? ? $ 522.75 Required: 1. Complete the table. 2. Calculate Hermosa's contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $690. 4. Calculate Hermosa's break-even point in units and sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of bikes produced and sold 460 Units 750 Units 910 Units Total costs Variable costs $ 110,860 Fixed costs per year Total costs $ 110,860 $ O $ Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $…
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Using the high low method, Hadley Company calculated the variable cost as $2.5 per unit. The high level of the activity was 2320 units and $38325 of total cost. Total fixed costs equal $ your answer as a whole number. 32.525 Moving to another question will save this response. Ent << Question 4 of
Smart Stream Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 8,000 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 87 per unit Factory overhead $349,300 Direct labor 40 Selling and admin. exp. 122,700 Factory overhead 26 Selling and admin. exp. 21
Donnelly Company has three products, R2, R4, and R2D2. The following information is available: Product R2 Product R4 Product R2D2 Sales $30,000 $45,000 $12,000 Variable Costs 18,000 24,000 7,500 Contribution Margin 12,000 21,000 4,500 Fixed Costs: Avoidable 4,500 9,000 3,000 Unavoidable 3,000 4,500 2,700 Operating Income $4,500 $7,500 $(1,200) Donnelly Company is thinking of dropping Product R2D2 because it is reporting a loss. Assuming Donnelly drops Product R2D2 and does not replace it, what will happen to operating income?
Dewey Manufacturing has been approached by a new customer with an offer to purchase 500 units of its hands-free automotive model SMAK at a price of $15,000 per unit. Existing sales would not be affected, and Dewey has sufficient capacity to produce the special order. Fixed overhead will not change if Dewey accepts the order or not. Unit cost data is: Per Unit: Direct Materials $6,000 Direct Labor $2,500 Variable OVHD $3,500 Fixed OVHD $10,000 $22,000 Normal sales price is $27,000. Assume Dewey decides to accept the order. How much will their operating income change? Should they have accepted the order