Ask question

Ask question

All categories

3 years ago

15

Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the

total cost. The data for various levels of production are as follows:
Units Produced Total Costs
95,000 $28,460,000
110,000 31,010,000
127,000 33,900,000
a) Determine the variable cost per unit and the total fixed cost.
b) Based on part (a), estimate the total cost for 80,000 units of production.

1 answer:

mafiozo [28]3 years ago

7 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Units Produced Total Costs

95,000 $28,460,000

110,000 31,010,000

127,000 33,900,000

To calculate the variable and fixed costs, we need to use the following formula:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (33,900,000 - 28,460,000) / (127,000 - 95,000)

Variable cost per unit= $179 per unit

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 33,900,000 - (170*127,000)

Fixed costs= 12,310,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 28,460,000 - (170*95,000)

Fixed costs= 12,310,000

B) Units= 80,000

Total cost= 12,310,000 + 170*80,000= $25,910,000

You might be interested in

Juan earns a gross pay of $44,500. His employee benefits are 18% of his gross pay. What is the value of his benefits?

fomenos

Answer: I think its $8,100

Explanation:

i hope it helps

3 0

3 years ago

The graph shows excess demand. A graph titled Excess supply has quantity on the x-axis and price on the y-axis. A line with posi

Tema [17]

Answer:

The price of goods needs to be increased.

Explanation:

Excess demand occurs when the quantity demanded is higher than the quantity supplied. This happens when the price of the good is lower than the equilibrium price. This can happen naturally in the market, or can happen if the government imposes a binding price floor.

The best way to solve excess demand is to raise the price, in order to reach equilibrium. Once in equilibrium, the price will coordinate the quantity supplied and the quantity demanded so that they're roughly equal.

7 0

3 years ago

Read 2 more answers

Eastern europe has become successful at manufacturing automobiles and ________ products.

pshichka [43]

<span>Eastern Europe has become successful at manufacturing automobiles and Electronic products. In actuality, Central and Eastern Europe (CEE) have emerged as a global leader in the electronics industry. Hungary has been the area to experience the most growth in the electronics world.</span>

5 0

3 years ago

9 . Implied interest rate and period Consider the case of the following annuities, and the need to compute either their expected

vodomira [7]

Answer:

IRR 6% for Jabob

His friend will need 12 years saving cash to obtain their collegue funds.

Explanation:

We will solve for the rate being the annuity of 3 payment of 800

and the present value 2,138.41

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 800

time 3

PV 2,138.41

rate ?

$800 \times \frac{1-(1+x)^{-3} }{x} = 2,138.41\\$

To solve we can use excel, a financial calculator or trial and error

For excel we will do the following:

write the list of cash through the loan life:

-2,138.41

+800

+800

+800

then we write in the empy cell

=IRR(

select the values and press enter

This will give the IRR which is 6%

For the second assignment:

we need to solve for time:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 3,800

time n

rate 0.06

PV $31,897

$3800 \times \frac{1-(1+0.06)^{-n} }{0.06} = 31,897\\$

We work out the formula:

$(1+0.06)^{-n} = \frac{31,897\times 0.06}{3,800}$

Now we solve the right side and apply logarithmic properties

$-n = \frac{log0.503636842
}{log1.06}$

-n = -11.77128325

n = 11.77

It will take 12 years to obtain their target amount

3 0

3 years ago

What are two key elements in deciding how to collect data for marketing research?

aleksandrvk [35]

The answer is:

(1) setting the research objectives

(2) identifying possible marketing actions

What is marketing research?

Market research is the method of deciding the reasonability of a modern benefit or item through research conducted straightforwardly with potential clients.
Market research permits a company to find the target advertise and get conclusions and other criticism from consumers about their intrigued within the item or service.
This sort of research can be conducted in-house, by the company itself, or by a third-party company that specializes in advertise inquire about.
It can be done through overviews, item testing, and center bunches.
Test subjects are as a rule compensated with item tests or paid a small stipend for their time.
Market inquire about could be a basic component within the inquire about and improvement (R&D) of a modern item or service.

To know more about the marketing research visit:

brainly.com/question/24906199?

#SPJ4

7 0

1 year ago