Cost Volume Profit (CVP) Analysis: The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit. High-low method involves finding out the variable cost for a company using highest price and lowest price within a range of period for which the data is collected. The formula that is used here is- Variable cost per unit = (High Price- Low price)/ (Change in no. of units) Requirement-1: To Calculate: The Variable cost per unit and Total Fixed Costs using the high low method

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Answer 1

Question

Chapter 21, Problem 2PSB

To determine

Concept Introduction:

Cost Volume Profit (CVP) Analysis:

The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.

High-low method involves finding out the variable cost for a company using highest price and lowest price within a range of period for which the data is collected.

The formula that is used here is-

Variable cost per unit = (High Price- Low price)/ (Change in no. of units)

Requirement-1:

To Calculate:

The Variable cost per unit and Total Fixed Costs using the high low method

To determine

Concept Introduction:

Cost Volume Profit (CVP) Analysis:

The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.

High-low method involves finding out the variable cost for a company using highest price and lowest price within a range of period for which the data is collected.

The formula that is used here is-

Variable cost per unit = (High Price- Low price)/ (Change in no. of units)

Requirement-2:

To Calculate:

The total cost at the given level of units

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Martin Hughes earns net self-employment income of $157,100. He works a second job from which he receives FICA taxable earnings of $127,600.Self-Employment tax =

Question 2 U. Richards does not keep his books on the double entry system. His bank summary amount for 2010 is as follows: Balance 1.1.2010 1890 Receipts from $44656 debtors Creditors Loan from U. Miller $2.000 Rates Rent Drawings Cash withdrawn from bank $540 0 Payment to Trade $316 95 2750 1316 3095 1642 Sundry Expense Records of cash paid were sundry $122, trade creditors $642. Cash sales amounted to cash drawings were $5289. The following information is also available: 31.12.201 31.12.2 0 011 Cash in hand $48 $93 Trade creditors $4896 $5091 Accounts Receivables 60 $71 13 32 Rent Owing $250 Rates in Advance $282 $312 Motor van (at valuation) 2800 2400 Stock 11163 13021 Required: A. Statement of Affairs. (to find opening capital as at 31.12.2010) B. Cash Account & Bank Account. C. Accounts Receivables & Accounts Payables Control A/Cs. D. Income Statement for the year ended 31 December 2011.

2: Martin Hughes earns net self-employment income of $157,100. He works a second job from which he receives FICA taxable earnings of $127,600. Self-Employment tax = $ 6,440.70 3: Elisa Grant earns net self-employment income of $198,000. She works a second job from which she receives FICA taxable earnings of $100,400. Self-Employment tax = $ 30,294.00

Answer 2

Question

Chapter 21, Problem 2PSB

To determine

Concept Introduction:

Cost Volume Profit (CVP) Analysis:

The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.

High-low method involves finding out the variable cost for a company using highest price and lowest price within a range of period for which the data is collected.

The formula that is used here is-

Variable cost per unit = (High Price- Low price)/ (Change in no. of units)

Requirement-1:

To Calculate:

The Variable cost per unit and Total Fixed Costs using the high low method

To determine

Concept Introduction:

Cost Volume Profit (CVP) Analysis:

The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.

High-low method involves finding out the variable cost for a company using highest price and lowest price within a range of period for which the data is collected.

The formula that is used here is-

Variable cost per unit = (High Price- Low price)/ (Change in no. of units)

Requirement-2:

To Calculate:

The total cost at the given level of units

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 21, Problem 2PSB

To determine

Concept Introduction:

Cost Volume Profit (CVP) Analysis:

The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.

High-low method involves finding out the variable cost for a company using highest price and lowest price within a range of period for which the data is collected.

The formula that is used here is-

Variable cost per unit = (High Price- Low price)/ (Change in no. of units)

Requirement-1:

To Calculate:

The Variable cost per unit and Total Fixed Costs using the high low method

To determine

Concept Introduction:

Cost Volume Profit (CVP) Analysis:

The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.

High-low method involves finding out the variable cost for a company using highest price and lowest price within a range of period for which the data is collected.

The formula that is used here is-

Variable cost per unit = (High Price- Low price)/ (Change in no. of units)

Requirement-2:

To Calculate:

The total cost at the given level of units

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 21, Problem 2PSB

To determine

Concept Introduction:

Cost Volume Profit (CVP) Analysis:

The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.

High-low method involves finding out the variable cost for a company using highest price and lowest price within a range of period for which the data is collected.

The formula that is used here is-

Variable cost per unit = (High Price- Low price)/ (Change in no. of units)

Requirement-1:

To Calculate:

The Variable cost per unit and Total Fixed Costs using the high low method

To determine

Concept Introduction:

Cost Volume Profit (CVP) Analysis:

The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.

High-low method involves finding out the variable cost for a company using highest price and lowest price within a range of period for which the data is collected.

The formula that is used here is-

Variable cost per unit = (High Price- Low price)/ (Change in no. of units)

Requirement-2:

To Calculate:

The total cost at the given level of units

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 21, Problem 2PSB

To determine

Concept Introduction:

Cost Volume Profit (CVP) Analysis:

The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.

High-low method involves finding out the variable cost for a company using highest price and lowest price within a range of period for which the data is collected.

The formula that is used here is-

Variable cost per unit = (High Price- Low price)/ (Change in no. of units)

Requirement-1:

To Calculate:

The Variable cost per unit and Total Fixed Costs using the high low method

To determine

Concept Introduction:

Cost Volume Profit (CVP) Analysis:

The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.

High-low method involves finding out the variable cost for a company using highest price and lowest price within a range of period for which the data is collected.

The formula that is used here is-

Variable cost per unit = (High Price- Low price)/ (Change in no. of units)

Requirement-2:

To Calculate:

The total cost at the given level of units

Answer 6

Chapter 21, Problem 2PSB

To determine

Concept Introduction:

Cost Volume Profit (CVP) Analysis:

The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.

High-low method involves finding out the variable cost for a company using highest price and lowest price within a range of period for which the data is collected.

The formula that is used here is-

Variable cost per unit = (High Price- Low price)/ (Change in no. of units)

Requirement-1:

To Calculate:

The Variable cost per unit and Total Fixed Costs using the high low method

Answer 7

Chapter 21, Problem 2PSB

To determine

Concept Introduction:

Cost Volume Profit (CVP) Analysis:

The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.

High-low method involves finding out the variable cost for a company using highest price and lowest price within a range of period for which the data is collected.

The formula that is used here is-

Variable cost per unit = (High Price- Low price)/ (Change in no. of units)

Requirement-1:

To Calculate:

The Variable cost per unit and Total Fixed Costs using the high low method

Answer 8

To determine

Concept Introduction:

Cost Volume Profit (CVP) Analysis:

The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.

High-low method involves finding out the variable cost for a company using highest price and lowest price within a range of period for which the data is collected.

The formula that is used here is-

Variable cost per unit = (High Price- Low price)/ (Change in no. of units)

Requirement-2:

To Calculate:

The total cost at the given level of units

Answer 9

To determine

Concept Introduction:

Cost Volume Profit (CVP) Analysis:

The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.

High-low method involves finding out the variable cost for a company using highest price and lowest price within a range of period for which the data is collected.

The formula that is used here is-

Variable cost per unit = (High Price- Low price)/ (Change in no. of units)

Requirement-2:

To Calculate:

The total cost at the given level of units

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 21 - Cost behavior identification C1 Listed here are...Ch. 21 - QS 21-2 Cost behavior identification c1 ...Ch. 21 - QS 21-3 Cost behavior estimation—high-low method...Ch. 21 - Prob. 4QS Ch. 21 - Prob. 5QS Ch. 21 - Prob. 6QS Ch. 21 - Prob. 7QS Ch. 21 - Prob. 8QS Ch. 21 - Prob. 9QS Ch. 21 - Prob. 10QS

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Chapter 21 Solutions