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love history [14]
3 years ago
5

In applying the high-low method, what is the fixed cost? month miles total cost january 80,000 $144,000 february 50,000 120,000

march 70,000 141,000 april 90,000 195,000
Business
1 answer:
kupik [55]3 years ago
5 0
The high and low levels of activity are 90,000 miles in April and 50,000 miles in February. The costs at these two levels are $195,000 and $120,000, re-spectively. The difference in costs is $75,000 ($195000-120000), and the difference in miles is 40,000 (90000-50000). Therefore, variable cost per unit is $1.875computed as follows.
75000÷40000=1.875

Determine the fixed costs by subtracting the total variable costs at either the high or the low activity level from the total cost at that activity level
Variable cost=1.875×50,000=93,750

fixed cost=120,000−93,750=26,250


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Alternative A would involve substantial fixed but relatively low variable costs: fixed costs would be $250,000 per year, and var
stepladder [879]

Answer:

From zero to 33 boats option B would be best

Explanation:

Assuming the first alternative (A)is 250,000 fixed and 500 per boat

second (B) 2,500 cost per boat

and third (C) 50,000 fixed and 1,000 cost per boat

We want' to know at which level B would be the best option

we want to know when alternative C or A have a cost of 2,500 or lower:

A:

500 + \frac{250,000}{Q} = 2,500

\frac{250,000}{2,500 - 500} = Q

Q = 125

From this point, as fixed cost will be distribute among more units, the cost will decrease meaking C better than B

C:

1,000 + \frac{50,000}{Q} = 2,500

\frac{50,000}{2,500 - 1,000} = Q

Q = 33.33

From this point, as fixed cost will be distribute among more units, the cost will decrease meaking A better than B

From zero to 33 boats option B would be the best of the three options

6 0
3 years ago
Producer surplus equals the Group of answer choices amount received by sellers minus the amount paid by buyers. value to buyers
kvv77 [185]

Answer:

Option D amount received by sellers minus the cost to sellers.

Explanation:

The producer surplus is the difference between the amount that the seller actually received and the amount the seller wants to receive.

Producer Surplus = Amount actually received by the seller - Amount the supplier wants to receive

All the remaining options discusses buyer influence which shows that these are totally incorrect and the only option that is correct is option D.

7 0
3 years ago
Lee Kwon is a Korean worker who has been transferred by his company to the United States for six months to negotiate a supplier
Greeley [361]

Answer:

high-context culture

Explanation:

A high-context culture is a form of communicating with people in which the language and its rules play a very blurred role. The communication is primarily executed through the use of contextual elements like the language of the body, the tone used. Only the required information is set out for communication and the verbal expressions are kept aside. The members focus primarily on interpersonal relationships.

8 0
3 years ago
Wyman Corporation uses a process costing system. The company manufactured certain goods at a cost of $800 and sold them on credi
Shtirlitz [24]

Answer:

Accounts receivable (Dr.)                          $1,075

                Sales revenue (Cr.)                                          $1,075

Cost of goods sold (Dr.)                                800

                Finished goods (Cr.)                                            800

where

Dr. = Debit

Cr. = Credit

Explanation:

The inventory account of a manufacturing firm has three sub-accounts: Raw materials, Work-in-process, and Finished goods. The goods purchased by the company were sold without any work done. It means that they were purchased in finished form, so, the company will record these goods in its finished goods inventory. When goods are sold, we have to record sales and receivable. AND on the same time, under perpetual inventory system, the cost of goods that are sold and inventory account are also adjusted to reflect the changes.

7 0
3 years ago
Read 2 more answers
At Crater Valley Manufacturing, workers are encouraged to find their own solutions to problems, and to implement their solutions
Marizza181 [45]

Answer:

a) Theory Y

Explanation:

Crater Valley Manufacturing has adopted the theory Y management approach.  Theory  Y proposes a participative management style, teamwork, and decentralization of the decision-making process. In the theory Y approach, managers encourage employees initiatives that will contribute to the success of the organization. Theory Y tries to match the organizations' objectives with the employees' aspirations.

<u>Some of theory Y assumption include</u>

  1. Employees have a natural tendency to work and play.
  2. Employees have self-direction and self-discipline in pursuit of organizational goals without external coercion or threats.
  3. An average person seeks and accepts responsibilities.
  4. Employee loyalty and commitment is as a result of job satisfaction and job reward.

5 0
3 years ago
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