Use a cost-volume graph to determine the type of cost behavior exhibited in Groups A, B, and C. In the graph, volume should range from 0 to 24,000 units (in 4,000 unit increments), and cost should range from $0 to$35,000 (in $5,000 increments).VolumeGroup A Group B Group C(applicable to each group) Costs Costs Costs2,00012,00016,00020,000$2,600 $1,000 $2,40012,600 6,000 2,40016,600 8,000 2,40020,600 10,000 2,4001. Identify the cost behavior (fixed, mixed, or variable) in the three groups.Group Cost behaviorABC2. What is the expected total cost for Group B if volume is 0?$3. What is the expected total cost for Group C if volume is 0?Check

Variable Cost - Variable cost is the cost which is per unit fixed and varies with the level of…

Answered: Use a cost-volume graph to determine…

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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Complete the table below for contribution margin per unit, total contribution margin, and contribution margin ratio: E (Click the icon to view the table.) Compute the missing information, starting with scenario A, then for scenarios B and C. (Enter the contribution margin ratio to nearest percent, X%.) A Number of units 1,510 units Sale price per unit $ 1,600 Variable costs per unit 1, 120 Calculate: Contribution margin per unit Total contribution margin Contribution margin ratio Data Table A Number of units 1,510 units 14,390 units 2,450 units Sale price per unit 1,600 $ 4.400 5,000 Variable costs per unit 1,120 880 3,750 Calculate: Contribution margin per unit Total contribution margin Contribution margin ratio Print Done Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Final Check
Identify the cost graph that best illustrates its cost behavior as the number of units produced increases
For a company with the product portfolio in the Table, determine an aggregate unit and determine the material cost, revenue and net production time per aggregate unit. Family Material Revenue/ Percentage Share Setup Time/Batch Batch Size (hour) Average Production Net Cost/ Unit Unit ($) ($) Time/ Unit Production of Units Sold Time/Unit (hour) 5.76 (hour) A 15 54 8 50 5.60 20 B 7 30 6 150 3.00 3.04 30 3.80 4.80 9 39 8 100 3.88 35 15 12 49 10 50 5.00
Evaluating Selected Cost Driver Assume that a manufacturer of specialized machine parts developed the following total cost estimating equation for manufacturing costs. Y = $14,400 + $1,250 (actual units) a. What is total estimated manufacturing costs if 180 units are produced? $Answer 0
From the below given data, which cost has no relationship with the level of output? Type of cost Amounts (OMR) Total cost 6,000 Variable costs 4,000 Semi variable costs 1,000 Fixed cost 1,000 O a. Variable costs O b. Semi variable costs OC. Total cost Od. Fixed cost
Question: Warner Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 2,070 1,200 $210,500 158,400 3,200 Required: 246,400 a) Determine the variable cost per unit and the total fixed cost. (Round to nearest dollar) b) Based on part (a), estimate the total cost for 1,580 units of production.
Max Machining incurs the following utilities costs at different levels of production: 0 units: 500 units: 1,000 units: How would utility costs be properly classified? Select one: A. Stepped B. Fixed C. Mixed D. Curvilinear E. Variable $120 $2,620 $5,120
Calculate the per-unit contribution margin of a product that has a sale price of $225 if the variable costs per unit are $70. Contribution margin $ per unit
The Jones Company has the following cost schedule: Output Total Cost (Units) ($) 0 3000 50 3750 100 4275 150 4675 200 5000 250 5300 300 5700 350 6250 400 7050 450 8225 Prepare (a) average total cost and (b) marginal cost schedules for the firm.
sing the following data, apply the high-low method of cost analysis to the three cost data groups: Volume Alpha Beta Gamma 2,000 $6,600 $2,400 $8,000 6,000 $9,800 $7,000 $8,000 13,000 $13,000 $12,000 $8,000 20,000 $21,000 $24,000 $8,000 What cost behavior patterns are apparent for Beta? Select one: a. Fixed b. Variable c. Mixed d. Semi-fixed e. None of the above
Using the following data, apply the high-low method of cost analysis to the three cost data groups: Volume Alpha Beta Gamma 2,000 $6,600 $2,400 $8,000 6,000 $9,800 $7,000 $8,000 13,000 $13,000 $12,000 $8,000 20,000 $21,000 $24,000 $8,000 What cost behavior patterns are apparent for each group? Select one: a. Alpha = Variable, Beta = Mixed, Gamma = Fixed b. Alpha = Mixed, Beta = Fixed, Gamma = Variable c. Alpha = Variable, Beta = Fixed, Gamma = Mixed d. Alpha = Fixed, Beta = Variable, Gamma = Mixed e. Alpha = Mixed, Beta = Variable, Gamma = Fixed
The following data have been collected for four different cost items. Cost at Cost 100 Cost at Item units 140 units W $8,000 $10,560 X $5,000 $ 5,000 $6,500 $ 9,100 Z $6,700 $ 8,580 NAX Y Which of the following classifications of these cost items by cost behavior is correct? A) B) C) D) Cost W variable mixed variable mixed Cost X fixed fixed fixed fixed Cost Y mixed variable variable mixed Cost Z variable mixed variable mixed

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