1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lynna [10]
3 years ago
14

Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is drive

n 114,000 kilometers during a year, the average operating cost is 12.7 cents per kilometer. If a truck is driven only 76,000 kilometers during a year, the average operating cost increases to 14.8 cents per kilometer.
Required:
1.Using the high-low method, estimate the variable and fixed cost elements of the annual cost of the truck operation. (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places and Fixed cost answer to nearest whole dollar amount.)
2. Express the variable and fixed costs in the form Y = a + bX. (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places.)
3. If a truck were driven 95,000 kilometers during a year, what total cost would you expect to be incurred? (Do not round intermediate calculations.)
Business
1 answer:
Anvisha [2.4K]3 years ago
5 0

Explanation:

The computation of the fixed cost and the variable cost per hour by using high low method is shown below:

Variable cost per hour = (High Operating cost - low operating cost) ÷ (High driven in kilometers - Low driven in kilometers)

where,

High operating cost = 114,000 km × 12.7%

= $14,478

Low operating cost = 76,000 km  × 14.8%

= $11,248

So,

= ($14,478 - $11,248) ÷ (114,000 km - 76,000 km)

= $3,230 ÷ 38,000 km

= $0.085 per km

Now the fixed cost equal to

= High operating cost - (High driven in kilometers × Variable cost per km)

= $14,478 - (114,000 km × $0.085)

= $14,478 - $9,690

= $4,7882

2. The equation is as follows

Y = a + bx

So,

Total cost = $4,788 + 0.085X

3.

Y = a + bx

   = $4,788 + 0.085 × 95,000

   = $4,788 + $8,075

   = $12,863

You might be interested in
Phillip and Naydeen Rivers are married with two dependent children. The family has household income of $39,360 in 2018. They pai
SpyIntel [72]

Answer:

$8,033

Explanation:

The premium tax credit is a refundable tax credit given to qualifying families or individuals that purchase health insurance through the Health Insurance Marketplace. In order to qualify for the premium tax credit a family or individual must have low or moderate income. The lower your income the larger the tax credit.

The tax credit is calculated using the cost of the silver plan available through the Health Insurance Marketplace and subtracting a percentage of the taxpayer's income.

The Rivers' premium tax credit = $9,800 - $1,767 = $8,033

6 0
3 years ago
True or false? an hie moves health information among organizations while adhering to national standards.
Amiraneli [1.4K]
<span>True. An health information exchange(hie)'s sole aim is to share electronically information crosswise over associations inside an area, group or hospital facility framework. Practically speaking the term HIE may likewise allude to the association that encourages the trade</span>
3 0
3 years ago
What are some common motivations of financial statement fraud examination?
WINSTONCH [101]

Answer:

To support a high stock price, to support a bond or stock offering, or to increase the company's stock price.

Explanation:

The motivation to publish fraudulent financial statements varies depending on the situation. A common theme in many cases of fraud is the attempt to improve the reported financial information to maintain high stock prices, support bonds or stock quotes, or raise a company's stock price. In many companies that published fraudulent financial statements, senior executives held significant stocks or stock options, and lowering the price of the stock would significantly reduce personal net worth or make worthless options. As a result, senior management had to maintain the high share price and therefore needed high returns to maintain the high share price. Investors value reports that increase profits each year. Indeed, the decline in earnings can significantly lower a company's stock price. Sometimes fraudulent financial reports cause line managers to exaggerate the results to meet the company or other expectations. Sometimes the cost of failure in corporate governance is high, and when it comes to choosing between failure and fraud, some managers quickly turn to fraud.

5 0
3 years ago
Striking Apparels has launched its new stock of summer wear. It plans to target shoppers between the ages of twenty and thirty t
Scorpion4ik [409]

Answer:

"D"

Explanation:

Daniel belongs to the <u>Marketing</u> department of Striking.

4 0
3 years ago
One component of pension expense is actual return on plan assets. plan assets include only assets reported on the balance sheet
Yuki888 [10]
<span>The correct answer is:  [D]:
________________________________________________________
     "assets that a company holds to earn a reasonable return, generally at minimum risk."
________________________________________________________</span>
8 0
4 years ago
Other questions:
  • Is mercury an appropriate target for agi? why or why not?
    8·1 answer
  • Among the following traits which trait is most likely to be present in the second identical twin if it is present in the first?
    9·1 answer
  • On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable semi annually on June 30 and
    15·1 answer
  • Which of the following students is most likely to receive a merit-based scholarship?
    14·1 answer
  • Cash $207,200 Salaries and wages expense (sales) $318,080 Inventory 599,200 Salaries and wages expense (office) 387,520 Sales re
    15·1 answer
  • Which term refers to the first level of a product, which depends on the customer value it generates?
    7·2 answers
  • • A student planning a career in business management wondered why it was important to learn cost and management accounting. How
    11·1 answer
  • Short Company purchased land by paying $11,000 cash on the purchase date and agreed to pay $11,000 for each of the next six year
    10·1 answer
  • Jansen Inc. acquired all of the outstanding common stock of Merriam Co. on January 1, 2019, for $257,000.Annual amortization of
    6·1 answer
  • Ann Jones uses a dry-cleaning machine in her business, and it was partially destroyed by firE. At the time of the fire, the adju
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!