Ans. 1 | Option B $3.00 / unit | |||
High low method : In this method, we assumed that the highest activity (miles driven) leads to | ||||
highest cost and lowest activity leads to lowest cost. | ||||
Variable cost per unit = (Highest cost - Lowest cost) / (Highest activity - Lowest activity) | ||||
($150 - $90) / (31 - 11) | ||||
$60 / 20 | ||||
$3.00 / unit | ||||
Ans. 2 | Option C $9,400 | |||
Calculations: | ||||
Fixed cost at current level = Current production volume * Fixed cost per unit | ||||
1,000 * $4 = $4,000 | ||||
Total fixed cost and variable cost per unit always remain constant on each level | ||||
of production activities. So the total cost on the level of 900 units will be calculated | ||||
as follows: | ||||
Fixed cost | $4,000 | |||
Variable cost ($6 * 900) | $5,400 | |||
Total cost | $9,400 | |||
Ans. 3 | Option D $3,000 | |||
Calculations: | ||||
*Contribution margin per unit = Price - Unit variable cost | ||||
$30 - $20 = $10 per unit | ||||
Break even revenue in dollars = Fixed cost / Contribution margin per unit * Price per unit | ||||
$1,000 / $10 * $30 | ||||
$3,000 | ||||
please show work/give explaination 21 180-120 26-11 * Estimate unit variable cost Month Total costs Activity...
1. Estimate unit variable cost Month Total costs Activity volume in units September $120 21 October $90 11 November $150 31 December $180 26 A not enough information need to know the contribution margin statement in the relevant range B. $3.00/unit C. $4.00/unit D. $4.50/unit E. $6.00/unit
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b l eu dald Ulloal Tevenue and total COSLS to determine CMR ET 800 an 4. Estimate unit variable costs. Production volume was 10 units. fire insurance $100 depreciation $240 rent $200 assembly workers' wages $500 production supervisor's salary $120 direct materials $300 A. $30 per unit B. $50 per unit C. $80 per unit D. $104 per unit E. not enough information it depends on whether the relevant range is fixed or variable 5. Which...
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DULU 9. Current sales revenue in dollars is $6,000. The price is $3 per unit, variable costs are $1 per unit, and total fixed costs are $1,000. Compute the margin of safety: A. not enough information need to know the breakeven point B. 8.33% C. 25% D. 75% E. 91.67% (3-1) 21000 2 1. At current sales revenue of $700, total variable costs are $560 and total fixed costs are $50. Your boss gave you a...
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ولادیم 6. Compute purchases of new merchandise during the period using the following data: Cost of beginning inventory $40 Cost of goods sold (COGS) $140 Cost of ending inventory $30 A. $10 8 $130- C. $150 D. $210 not enough information-need data on fixed and variable COGS X Manufacturing costs for product X include direct materials $18 per unit, direct labor $1 per unit, variable overhead $2 per unit, and fixed overhead $3 per unit, for...
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Question 17 2.5 pts Estimate unit variable cost Total costs Activity volume in units month 1 $155 29 month 2 $95 month 3 $125 19 month 4 $185 24 O $4.00 per hour $6.00 per hour O $3.00 per hour not enough information -- need to know the contribution margin statement in the relevant range $4.50 per hour
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Question 18 2.5 pts At current production volume of 1,000 units, variable costs are $2 per unit and fixed costs are $3 per unit, for a total unit cost of $5 per unit. Predict total costs at production volume of 900 units. O $4,500 O $4,800 not enough information -- need to know the total cost equation O $1,800 0 $4,700
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13. X Company's cost of goods sold (COGS) includes direct materials, direct labor, depreciation on production equipment, and factory rent. The company's selling, general, and administrative (SG&A) costs include sales office rent, sales staff salaries, and sales commissions. When sales volume increases by 15% in the short term, which of the following is true for the company's costs: total COGS total SG&A costs A increase by 15% no change B n o change increase by 15%...
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Question 19 2.5 pts Total fixed costs are $1,000, the price is $30, unit variable cost is $10. Breakeven revenue in dollars is: O $1,000 O $3,000 $50 O $1,500 O not enough information -- need data on total revenue and total costs to determine CMR
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