Ans: Variable cost per unit= High cost- low cost/(high volume - low volume)
= (7,840-4,012)/ (6,500-3,000)
= ( 3,828/3,500
= 1.0937
3000*1.0937+y = 4,012
3,281.20+y= 4,012
Y= 730.90
Y= $730.95 + 1.0937 X
B). Operating level of 4,000 units=
Y= 730.95+ 1.0937 * 4,000
Y= 730.95+ 4,374.80
y= 5,105.75
outlers F +vX 25. Presented below are the production data for the first six months of...
Presented below are the production data for the first six months of the year for the mixed costs incurred by Venus Company. Month Units January February March April May June Cost $5,350 $4,550 $6,810 $10,200 $5,900 $7,360 4,100 3,500 5,530 8,500 5,100 6,530 Venus Company uses the high-low method to analyze mixed costs. How would the cost function be stated? A. y = $5,650 + $1.30X B. y = $595 + $1.13X C. y = $10,200 + $1.20X OD. y...
Presented below are the production data for the first six months of the year for the mixed costs incurred by Vertise Company; Month Cost Units January $4,890 4,100 February 4,426 3,520 March 6,730 5,200 April 9,724 8,250 May 5,900 4,900 June 7,336 6,600 Vertise Company uses the high-low method to analyze mixed costs. How would the cost function be stated? Y = $7,850 + $1.18X Y = $2,388 + $1.12 Y = $5,298 + $1.19X Y = $484 +$1.12X None...
Presented below are the production data for the first six months of the year for the mixed costs incurred by Venus Company. Month Cost Units January $5,260 4,100 February $5,000 4,000 March $6,810 5,520 April $9,900 9,000 May $5,900 4,960 June $7,390 6,510 Venus Company uses the high-low method to analyze mixed costs. How would the cost function be stated? A. y = $4,900 + $1.25X B. y = $9,900 + $1.10X C. y = $1,080 + $0.98X D. y = $2,510 + $0.98X
Exhibit 5-1 Presented below are the production data for the mixed costs incurred by Clarion Company, Month Cost Units March $4,700 3,700 April 7,200 5,050 May 5,565 4,725 June 9,500 8,500 July 7,915 6,745 August 8,300 7,500 Clarion Company uses the high-low method to estimate mixed costs. Refer to Exhibit 5-1. How would the cost function be stated using the high-low method? Y = $3,700+ $1.00X OY - $9,500+ $1.00X Y = $1,000+ $1.00X Y-$3,700 + $1.10X