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emmainna [20.7K]
3 years ago
7

Cooke Corporation reports that at an activity level of 7,000 units, the total variable cost is $590,730, and the total fixed cos

t is $372,750. What would be the total cost, both fixed and variable, at an activity level of 7,100 units?
Business
1 answer:
Gnesinka [82]3 years ago
3 0

Answer:

Total cost would be $971,919

Explanation:

Fixed cost does not change with a variation in activity level, no matter how many units are produced, the cost remains the same, therefore, total fixed cost (F) is still $372,750.

As for the variable cost (V), a cost per unit (C) should be defined as follows:

C =\frac{V}{units} \\C =\frac{590,730}{7,000} \\C= 84.39

Applying the same logic, the new variable cost can be obtained by multiplying the cost per unit by the increased number of unities and then added to the fixed cost to find the total cost (T)

T = 7,100*C +F\\T = 7,100*84.39 +372,750\\\\T= 971,919

Total cost would be $971,919 at an activity level of 7,100 units.

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Answer:Unity of command

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______ effect happens when the place a product was manufactured influences how consumers perceive the product.
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What benefits do consumer product firms derive by marketing internationally?

Competition with other companies can be maintained. Sales and profits can be enhanced. Life cycles of products can be extended.

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Country of origin represents the country or countries of manufacture, production, design, or brand origin where an article or product comes from. For multinational brands, CO may include multiple countries within the value-creation process.

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8 0
2 years ago
Suppose a manufacturing plant purchased a new heating system in December, 2015 and, after installing and testing the equipment,
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Answer:

Depreciation for 6 months ending June 30, 2016 is $ 5,000 and the accounting entry to record the transaction is:

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Allowance for Depreciation  - Credit           $ 5,000  

Explanation:

The depreciation charge for the year is calculated as follows:

Total cost of the equipment                             $ 55,000

Salvage Value                                                    $  5,000

Net Depreciable value                                      $  50,000

Estimated Useful Life                                           5 years

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Answer:

<u>Overhead Report for heavy-duty trailer axles.</u>

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Customer orders ($ 320.00 × 1)        $320.00

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First an Activity Center where costs accumulate is identified these can be several in our scenario we have four Activity Centers.

Then the Cost driver rate is calculated for each Activity Center. Our question has provided these.

The final step is to allocate the overheads to a particular job using the cost driver rate.

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When buyers refuse to pay a product’s stated price or when improvements in other items or fashion changes reduce the appeal of t
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Reduction in the price. If they do not reduce the price, then people will not buy the product, and they will be left with too many of the same products. 


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