Please Provide Correct Solution Zerbel Company, a wholesaler of large, custom-built air conditioning unitsfor commercial buildings, has noticed considerable fluctuation in its shippingexpense from month to month:Units Total Shipping Shipped ExpenseMarchMonthJanuaryFebruary 74752368AprilMayJuneJuly$2,200$3,100$2,600$1,500$2,200$3,000$3,600Using the high-low method, estimate the cost formula for shippingexpense.

Solution:High Activity Level = July = 8 units shipped and Shipping cost at this level = $3,600Low…

Answered: Zerbel Company, a wholesaler of large,…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 15EB: Best Wholesale recently calculated their break-even point for their Midwest operations. The national...

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A wholesaler of custom-built air-conditioning units for commercial buildings gathered the following monthly data relating to units shipped and total shipping expense: Units shipped Total shipping expense $2,000 $2,500 $1,900 $2,200 $2,500 $3,030 $1,950 Month 2. January February March 3. April May June 4. 7. July 3 Using the high-low method estimate the cost formula for shipping expenses, calculate the variable shipping expense as well as fixed shipping expense per unit. %24 (All answers are whole numbers - unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g, -1000 for a decrease or loss of one thousand.) Variable shipping expense = $ per unit. Fixed shipping expense = $ per unit.
A supplier ships goods from Richmond, VA to three market places in 3 cities (Chicago, IL; Athens, GA; St. Luis, MO). The supplier can ship every day, every other day, or every third day. There is a penalty of $0.30/cwt for each day delayed. Consolidating shipments allows for lower transportation costs from larger loads, but incurs penalty costs due to the delay. Transportation Rate (S/cwt) Shipment City Weight/day LTL 50,000 lb 50000 Ib Chicago, IL 18,000 lb (180 cwt) 1.50 1.25 Athens, GA 15,000 lb (150 cwt) 1.35 1.00 St. Luis, MO 12,000 lb (120 cwt) 2.00 1.50 Total 45,000 lb = 450 cwt Find what is the cost for the following: Shipping Every Day Shipping on the alternate Day (every two days) Shipping every three Day
Required information [The following information applies to the questions displayed below.] Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense: Month January February March April May June July Units Shipped 3 6 4 Variable shipping expense Fixed shipping expense 5 7 Total Shipping Expense $1,800 $ 2,300 $1,700 $2,000 $ 2,300 $ 2,700 $1,200 2. Using the high-low method, estimate the cost formula for shipping expense. Answer is complete but not entirely correct. $ 760 per unit $ 22 per month
Required information [The following information applies to the questions displayed below.] Phillips Company manufactures air-conditioning units for commercial buildings and has noticed considerable variation in shipping expenses from month to month as per the data below: Month January February March April May June July Unita Shipped Total contribution margin 8 Total Shipping Expense $1,680 $2,580 Given the facts in part 3-8, estimate the total contribution margin for August if seven air conditioners are produced and sold. $ $1,950 $1,212 $1,800. $2,220 $3,072 2,170
Memofax Inc. produces memory enhancement kits for fax machines. Sales have been very erratic, with some months showing a profit and some months showing a loss. The company's contribution format income statement for the most recent month is given below. Sales (12,600 units at $40 per unit $504,000 Variable 202.40 *
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Due to erratic sales of its sole product, a high capacity battery for laptop computers, Salcedo Company has been experiencing difficulty for some time. The company's income statement for the most recent month is given below: Sales (19,500 units @ P500) P9,750,000 Less variable expenses (7,995,000) Contribution margin 1,755,000 Less fixed expenses 1,800,000 Net loss P (45,000) By automating certain operations, the company could reduce variable costs by P30 per unit. However, fixed costs would increase by P9600,000 each month. How would the breakeven point in units change if the company automated the operations?

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