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anzhelika [568]
3 years ago
6

In the Gabbana Company, maintenance costs are a mixed cost. At the low level of activity (40 direct labor hours), maintenance co

sts are $600. At the high level of activity (100 direct labor hours), maintenance costs are $1,100. Using the high-low method, what is the variable maintenance cost per unit and the total fixed maintenance cost?
Business
1 answer:
Vladimir79 [104]3 years ago
4 0

Answer:

(i) $8.33 per unit

(ii) $267

Explanation:

Under high-Low method:

Variable\ cost=\frac{Cost\ at\ high\ activity-cost\ at\ low\ activity}{Highest\ activity-Lowest\ activity}

Variable\ cost=\frac{1,100-600}{100-40}

Variable\ cost=\frac{500}{60}

                             = $8.33

Total cost = variable cost per unit + Fixed cost

1,100 = (8.33 × 100) +  Fixed cost

1,100 - 833 = Fixed cost

$267 = Fixed cost

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Answer:

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The computation of the expect monthly sales to be as high is shown below:

Given that

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5 0
3 years ago
A firm may opt to pay millions of dollars for celebrity endorsements in order to:_____
Oxana [17]

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Learn more about  consumers here: brainly.com/question/380037

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5 0
2 years ago
George's Grocery orders two dozen live lobsters from Sea Food Flyers. George's is to keep the lobsters happy by keeping them in
ser-zykov [4K]

Answer:

c. sale or return.

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This can be understood as a practice where you lend your work to a storekeeper.

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In this type of sale the buyer will be able to return the goods to the seller, so in this contract the risk of loss and the title will remain with the buyer until the goods are returned.

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Consider a production line with five stations. Station 1 can produce a unit in 9 minutes. Station 2 can produce a unit in 10 min
qaws [65]

Answer:

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Explanation:

3 0
4 years ago
For goods-producing For goods-producing firms, at which of the following levels of resource planning does scheduling for individ
shepuryov [24]

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