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SSSSS [86.1K]
3 years ago
13

Strait Co. manufactures office furniture. During the most productive month of the year, 3,000 desks were manufactured at a total

cost of $59,000. In the month of lowest production the company made 1,125 desks at a cost of $38,000. Using the high-low method of cost estimation, total fixed costs are
a. $21,000
b. $25,400
c. $42,000
d. $13,000

Business
1 answer:
Doss [256]3 years ago
3 0

Answer:

b. $25,400

Explanation:

Please see attachment .

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During its most recent fiscal year, Dover, Inc. had total sales of $3,200,000. Contribution margin amounted to $1,500,000 and pr
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Answer:

Fixed costs= 1,100,000

Explanation:

Giving the following information:

During its most recent fiscal year, Dover, Inc. had total sales of $3,200,000. Contribution margin amounted to $1,500,000 and pretax income was $400,000.

We need to reverse engineer the income statement to determine the total fixed costs. We know that the pretax income is the difference between the total contribution margin and the fixed costs.

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5 0
3 years ago
The additional benefit of producing one more roast beef sandwich at a local deli is $2. The additional cost of producing one mor
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Answer:

The correct answer is D) "producers should not produce one more roast beef sandwich because MC > MB"

Explanation:

Marginal cost (MC) is the additional cost that you provoke when you add an extra unit of goods or services to your company.

Marginal benefit (MB) is the additional benefit that you receive when you add an extra unit of goods or services to your company.

When:

MC > MB (producers shouldn't produce an additional good or service)

MC < MB (Producers should produce an additional good or service)

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