Question

2. Brock Morton has a fast-food franchise and on sales in terms of cost behavior, feed pay c chief of 543.000 ep fixed cost. Derrible con E. curvilinear cost Felton and Sons, Ine presently see a copy machine under an agree that the forsed fee each month and a charge for each copy Pulton made 7.000 5360 in March in May, the paid $20 for 3,000 copies. The company was method to analyze costs 3. Palton's variable cont per copy is C 50.033. D. 50.006 4. Pulton's monthly fixed fee is

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

Answer Part 2) The correct answer is D) semi variable cost Explanation It consist of fixed and variable cost. In this cost is fixed for certain level after which it becomes variable. Part 3) The correct answer is a) $ 0.04 Explanation Variable cost = (high cost - low cost) / (high level - low level) = (360-280)/(7000-5000) = 80/2000 = $0.04 Part 4) The correct answer is a) $ 80 Fixed cost = total cost for 7000 copies - variable cost for 7000 copies = 360 -(.04*7000) = 360-280 = $ 80