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umka2103 [35]
3 years ago
9

Handy Hiking produces backpacks. In 2018, its highest and lowest production levels occurred in July and January, respectively. I

n July, it produced 4,000 backpacks at a total cost of $110,000. In January, it produced 2,500 backpacks at a total cost of $87,500.
Q. Using the high/low method, the average variable cost of producing a backpack was: a. $15.00 b. $31.25 c. $30.38 d. $0.067

Q. Using the high/low method, the total fixed cost of producing a backpack was: a. $50,000 b. $1,500 c. $22,500 d. $109,733
Business
1 answer:
Irina-Kira [14]3 years ago
3 0

Answer:

1) a. $15

2) a. $50,000

Explanation:

July: n1 = 4,000; c1 =$110,000

January: n2 = 2,500; c1 =$87,500

1) Using the high/low method, the average variable cost is determine as the difference between the highest and lowest activity costs, divided by the difference between the highest and lowest output:

VC = \frac{c_1-c_2}{n_1-n_2}=\frac{110,000-87,500}{4,000-2,500}\\ VC=\$15

The average variable cost is $15.

2) The total fixed cost is determined by the highest activity cost (c1), subtracted by the product of the highest output and the variable cost (n1 x VC):

FC = c_1 -(n_1*VC)\\FC = 110,000 - (4,000*15)\\FC=\$50,000

Total fixed cost is $50,000.

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Answer:

True

Explanation:

The satisfaction of customer is the key need of survival for any business.

As the customer satisfaction will result into good branding, economic support and vital performance booster for the organisation.

Customer satisfaction ensures that the organization is socially and economically viable, and equally capable of running business with the perspective of growth.

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7 0
3 years ago
You just acquired a home mortgage for 30 years in the amount of $184,500 at 4.65 percent interest, compounded monthly. How much
alex41 [277]

Answer:

EMI=P*r * (1+r)^n/(1+r)^n-1

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r=rate of interest

n=numer of periods

Explanation:

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n=30*12=360

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EMI=$951

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Scorpion4ik [409]

Solution:

Let's start by assuming that the taxi ride demand is extremely elastic, to the extent that it is vertically sluggish! If the cabbies raise the fair price by 10% from 10.00 per mile to 11.00 per kilometre, the number of riders remains 20.

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