The following data pertain to activity and utilities costs for two recent years:Activity Level in UnitsUtilities CostMultiple Choice5075 per unit$1.50 per unitUsing the high-low method, what is the variable cost per unit for utilities?$125 per unitYear 2$133 per unit12,000$15,000Year 18,000$12,000

VARIABLE COST Variable Cost is a cost that varies with the level of output.variable costs include…

Answered: The following data pertain to activity…

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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Question 1: Salalah Company has the financial information given in the table for the year ended on 31 December 2020. Calculate the following a) Break-even point (in units and amount) b) PV ratio c) Margin of Safety (as amount and as percentage) OMR Sales (actual) Total fixed cost Selling price per unit Variable cost per unit 800,000 450,000 275 125
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $31.00 18.00 $ 13.00 Sales (8,600 units) Variable expenses Contribution, margin Fixed expenses Net operating income Total $ 266,600 154,800 111,800 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 56,000 $ 55,800 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales volume decreases by 90 units? 3. What would be the revised net operating income per month if the sales volume is.7,600 units?
steel company average cost per unit $1.425 at the 16,000 unit level of activity and $ 1.38 at the 20,000 unit of activity. assume that all of the activity level mentioned in this problem are within the revelent range. Predict the variable cost per unit
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If variable cost of goods sold totaled $101,100 for the year (16,850 units at $6 each) and the planned variable cost of goods sold totaled $109,680 (13,710 units at $8 each), the effect of the unit cost factor on the change in contribution margin is: a.$18,840 decrease b.$33,700 increase c.$33,700 decrease d.$18,840 increase
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The following data pertain to activity and utilities costs for two recent years: Activity Level in Units Utilities Cost Multiple Choice $0.75 per unit Year 2 $1.50 per unit 12.000 $15,000 Using the high-low method, what is the variable cost per unit for utilities? Year 1 8,000 $12,000