Answer:
Explanation:
In this question, we have to find out the net profit and the net cash flow which is shown below:
Net profit = Sales - cost of goods sold
= $760,000 - $300,000
= $460,000
And, the net cash flow would be
= Cash collections - Cost of goods sold
= $6,90,000 - 3,00,000
= $3,90,000
Hence, the cash flow statement is more beneficial for the company as the income statement does not state about the collection amount which results in the absence of the shareholder contribution wealth.
Answer:
Variable cost per unit= $1.5
Fixed costs= $2,000
Explanation:
Giving the following information:
Miles Driven Total Cost
January 10,000 $17,000
February 8,000 13,500
March 9,000 14,400
April 7,000 12,500
<u>To calculate the variable and fixed costs under the high-low method, we need to use the following formula:</u>
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (17,000 - 12,500) / (10,000 - 7,000)
Variable cost per unit= $1.5
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 17,000 - (1.5*10,000)
Fixed costs= $2,000
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 12,500 - (1.5*7,000)
Fixed costs= $2,000
Financial records, A company’s competitors. Got it from quizlet!
Answer:
Monthly factory overhead flexible budget
9000 HRS 10000 HRS 11000 HRS
Variable Overhead 40,500 45,000 49,500
Fixed Overheads 60,000 60,000 60,000
Total Overhead Costs 100,000 105,000 109,500
Explanation:
Fixed Costs do not change with the level of activity and thus remain the same for activity of 9,000 : 10,000 and 11,000 hours whilst variable overheads vary with the level of activity.
