Determine the amount of fixed cost earned every month using high-low method.

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Answer 1

Question

Chapter 2, Problem 16ESB

a)

To determine

Determine the amount of fixed cost earned every month using high-low method.

b)

To determine

Estimate the overall estimated monthly cost if producing 40,000 gallons of ice cream.

Given information:

The company produces 50,000 gallons of ice cream at the total cost is $82,000 at high point and total cost of $46,000 at low point producing 20,000 gallons of ice cream.

c)

To determine

The factors causing the estimate determinant in part b) to be inaccurate

d)

To determine

The way regression improves the accuracy by discussing the R2 statistic and impact of multiple regression analysis.

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Answer 2

Question

Chapter 2, Problem 16ESB

a)

To determine

Determine the amount of fixed cost earned every month using high-low method.

b)

To determine

Estimate the overall estimated monthly cost if producing 40,000 gallons of ice cream.

Given information:

The company produces 50,000 gallons of ice cream at the total cost is $82,000 at high point and total cost of $46,000 at low point producing 20,000 gallons of ice cream.

c)

To determine

The factors causing the estimate determinant in part b) to be inaccurate

d)

To determine

The way regression improves the accuracy by discussing the R2 statistic and impact of multiple regression analysis.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 2, Problem 16ESB

a)

To determine

Determine the amount of fixed cost earned every month using high-low method.

b)

To determine

Estimate the overall estimated monthly cost if producing 40,000 gallons of ice cream.

Given information:

The company produces 50,000 gallons of ice cream at the total cost is $82,000 at high point and total cost of $46,000 at low point producing 20,000 gallons of ice cream.

c)

To determine

The factors causing the estimate determinant in part b) to be inaccurate

d)

To determine

The way regression improves the accuracy by discussing the R2 statistic and impact of multiple regression analysis.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 2, Problem 16ESB

a)

To determine

Determine the amount of fixed cost earned every month using high-low method.

b)

To determine

Estimate the overall estimated monthly cost if producing 40,000 gallons of ice cream.

Given information:

The company produces 50,000 gallons of ice cream at the total cost is $82,000 at high point and total cost of $46,000 at low point producing 20,000 gallons of ice cream.

c)

To determine

The factors causing the estimate determinant in part b) to be inaccurate

d)

To determine

The way regression improves the accuracy by discussing the R2 statistic and impact of multiple regression analysis.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 2, Problem 16ESB

a)

To determine

Determine the amount of fixed cost earned every month using high-low method.

b)

To determine

Estimate the overall estimated monthly cost if producing 40,000 gallons of ice cream.

Given information:

The company produces 50,000 gallons of ice cream at the total cost is $82,000 at high point and total cost of $46,000 at low point producing 20,000 gallons of ice cream.

c)

To determine

The factors causing the estimate determinant in part b) to be inaccurate

d)

To determine

The way regression improves the accuracy by discussing the R2 statistic and impact of multiple regression analysis.

Answer 6

Chapter 2, Problem 16ESB

a)

To determine

Determine the amount of fixed cost earned every month using high-low method.

Answer 7

Chapter 2, Problem 16ESB

a)

To determine

Determine the amount of fixed cost earned every month using high-low method.

Answer 8

b)

To determine

Estimate the overall estimated monthly cost if producing 40,000 gallons of ice cream.

Given information:

The company produces 50,000 gallons of ice cream at the total cost is $82,000 at high point and total cost of $46,000 at low point producing 20,000 gallons of ice cream.

Answer 9

b)

To determine

Estimate the overall estimated monthly cost if producing 40,000 gallons of ice cream.

Given information:

The company produces 50,000 gallons of ice cream at the total cost is $82,000 at high point and total cost of $46,000 at low point producing 20,000 gallons of ice cream.

Answer 10

c)

To determine

The factors causing the estimate determinant in part b) to be inaccurate

Answer 11

c)

To determine

The factors causing the estimate determinant in part b) to be inaccurate

Answer 12

d)

To determine

The way regression improves the accuracy by discussing the R2 statistic and impact of multiple regression analysis.

Answer 13

d)

To determine

The way regression improves the accuracy by discussing the R2 statistic and impact of multiple regression analysis.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 2 - Prob. 1LO Ch. 2 - Prob. 2LO Ch. 2 - Prob. 3LO Ch. 2 - Prob. 4LO Ch. 2 - Select an appropriate time period for calculating...Ch. 2 - Use the high-low method, scattergraphs, and...Ch. 2 - Prob. 1Q Ch. 2 - 2. How can knowing cost behavior relative to...Ch. 2 - 3. Define the term operating leverage and explain...Ch. 2 - 4. How is operating leverage calculated?

Determine the amount of fixed cost earned every month using high-low method.

Determine the amount of fixed cost earned every month using high-low method.

Estimate the overall estimated monthly cost if producing 40,000 gallons of ice cream. Given information: The company produces 50,000 gallons of ice cream at the total cost is $82,000 at high point and total cost of $46,000 at low point producing 20,000 gallons of ice cream.

The factors causing the estimate determinant in part b) to be inaccurate

The way regression improves the accuracy by discussing the R2 statistic and impact of multiple regression analysis.

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Chapter 2 Solutions

Estimate the overall estimated monthly cost if producing 40,000 gallons of ice cream.

Given information:

The company produces 50,000 gallons of ice cream at the total cost is $82,000 at high point and total cost of $46,000 at low point producing 20,000 gallons of ice cream.