Draw a line to show the relationship between total fixed cost and the level of activity

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Answer 1

Question

Chapter 11, Problem 7E

a)

To determine

Draw a line to show the relationship between total fixed cost and the level of activity

b)

To determine

Draw a line to show the relationship between fixed cost per unit and the level of activity

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Question: Record the fees received in advance in a general journal format. • July 1, 2021- Signed a lease for an office and issued Check 101 for $15,600 to pay the rent in advance for six months. • July 1, 2021- Borrowed money from Bancorp West by issuing a four-month, 4.5 percent note for $40,000; received $39,400 because the bank deducted the interest in advance. • July 1, 2021- Signed an agreement with Johnson Ventures to provide financial services for one year at $6,000 per month; received the entire fee of $72,000 in advance. The $72,000 was credited to Unearned Financial Service Fees. • July 1, 2021- Purchased office equipment for $15,900 from Office Outfitters; issued a two-month, 6 percent note in payment. The equipment is estimated to have a useful life of five years and a $1,500 salvage value. The equipment will be depreciated using the straight-line method. • July 1, 2021- Purchased a one-year insurance policy and issued Check 102 for $1,860 to pay the…

Question: Record the payment of rent in a general journal format using the information below. July 1, 2021- Signed a lease for an office and issued Check 101 for $15,600 to pay the rent in advance for six months. • July 1, 2021- Borrowed money from Bancorp West by issuing a four-month, 4.5 percent note for $40,000; received $39,400 because the bank deducted the interest in advance. • July 1, 2021- Signed an agreement with Johnson Ventures to provide financial services for one year at $6,000 per month; received the entire fee of $72,000 in advance. The $72,000 was credited to Unearned Financial Service Fees. • July 1, 2021- Purchased office equipment for $15,900 from Office Outfitters; issued a two-month, 6 percent note in payment. The equipment is estimated to have a useful life of five years and a $1,500 salvage value. The equipment will be depreciated using the straight-line method. • July 1, 2021- Purchased a one-year insurance policy and issued Check 102 for $1,860…

Question: Record the borrowing in a general journal format. • July 1, 2021- Signed a lease for an office and issued Check 101 for $15,600 to pay the rent in advance for six months. • July 1, 2021- Borrowed money from Bancorp West by issuing a four-month, 4.5 percent note for $40,000; received $39,400 because the bank deducted the interest in advance. • July 1, 2021- Signed an agreement with Johnson Ventures to provide financial services for one year at $6,000 per month; received the entire fee of $72,000 in advance. The $72,000 was credited to Unearned Financial Service Fees. • July 1, 2021- Purchased office equipment for $15,900 from Office Outfitters; issued a two-month, 6 percent note in payment. The equipment is estimated to have a useful life of five years and a $1,500 salvage value. The equipment will be depreciated using the straight-line method. • July 1, 2021- Purchased a one-year insurance policy and issued Check 102 for $1,860 to pay the entire premium. •…

Answer 2

Question

Chapter 11, Problem 7E

a)

To determine

Draw a line to show the relationship between total fixed cost and the level of activity

b)

To determine

Draw a line to show the relationship between fixed cost per unit and the level of activity

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 11, Problem 7E

a)

To determine

Draw a line to show the relationship between total fixed cost and the level of activity

b)

To determine

Draw a line to show the relationship between fixed cost per unit and the level of activity

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 11, Problem 7E

a)

To determine

Draw a line to show the relationship between total fixed cost and the level of activity

b)

To determine

Draw a line to show the relationship between fixed cost per unit and the level of activity

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 11, Problem 7E

a)

To determine

Draw a line to show the relationship between total fixed cost and the level of activity

b)

To determine

Draw a line to show the relationship between fixed cost per unit and the level of activity

Answer 6

Chapter 11, Problem 7E

a)

To determine

Draw a line to show the relationship between total fixed cost and the level of activity

Answer 7

Chapter 11, Problem 7E

a)

To determine

Draw a line to show the relationship between total fixed cost and the level of activity

Answer 8

b)

To determine

Draw a line to show the relationship between fixed cost per unit and the level of activity

Answer 9

b)

To determine

Draw a line to show the relationship between fixed cost per unit and the level of activity

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 11 - 1.Define fixed cost and variable cost and give an...Ch. 11 - Prob. 2Q Ch. 11 - 3.Define the term operating leverage and explain...Ch. 11 - Prob. 4Q Ch. 11 - Prob. 5Q Ch. 11 - 6.If volume is increasing, would a company benefit...Ch. 11 - Explain the risk and rewards to a company that...Ch. 11 - 9.Are companies with predominately fixed cost...Ch. 11 - 10.How is the relevant range of activity related...Ch. 11 - Which cost structure has the greater risk?...

Draw a line to show the relationship between total fixed cost and the level of activity

Solution Summary: The author illustrates the relationship between total fixed cost and the level of activity. Fixed cost s is the cost which remains constant when volume changes but per unit value will change inversely with change in volume

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Draw a line to show the relationship between total fixed cost and the level of activity

Draw a line to show the relationship between fixed cost per unit and the level of activity

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