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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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3 years ago
Wildhorse Company increased its investments in marketable securities by $323,370 and paid $1,232,231 for new fixed assets during
patriot [66]

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3 years ago
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Answer:

The correct answer is A

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6 0
3 years ago
Read 2 more answers
tuart Company had Net Income for 2020 of $8,100,000. The firm invested $1,000,000 in manufacturing equipment during 2020. The eq
anygoal [31]

Answer:

$7,300,000

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net cash flow=net income+ annual depreciation-capital expenditure

The annual depreciation would be added back since it is not cash flow in the actual sense

net income=$8,100,000

capital expenditure=$1,000,000

annual depreciation=capital expenditure/useful life

useful life=5years

annual depreciation=$1,000,000/5

annual depreciation=$200,000

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net cash flow=$7,300,000

8 0
3 years ago
If you deposit $1,000 in the bank when your son is born. if the money earns 5% interest how much total money will he have saved
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PxRxT/100

1000*5*18/100

$900

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