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maks197457 [2]
3 years ago
5

Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the

total cost. The data for various levels of production are as follows: Units Produced Total Costs 855 $143,640 1,910 168,860 2,755 223,440 a. Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) $ per unit Total fixed cost: $ b. Based on part (a), estimate the total cost for 1,300 units of production. Total cost for 1,300 units: $
Business
1 answer:
irga5000 [103]3 years ago
5 0

Answer:

Variable cost per unit = $42 per unit

Total fixed cost = $107,730

Total cost for 1,300 units = $162,330

Explanation:

Mathematically;

Variable cost per unit=[Total cost at highest level-Total cost at lowest level]/(Highest level-Lowest level)

From the question;

Total cost at highest level = 223,440

Total cost at lowest level = 143,640

Highest level = 2755

lowest level = 855

Substituting these values, we have;

Variable cost per unit = (223,440-143,640)/(2755-855) = 79,800/1900 = $42 per unit

Fixed costs = Total cost at highest level- ( variable cost per unit * units produced at highest level) = 223,440-(42 * 2755) = 107,730

Total cost for 1,300 units

Total cost = Fixed cost + Variable cost per unit(number of units)

= $107,730 + 42(1,300) = $162,330

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Answer:

The correct answer is option A.

Explanation:

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Other than that money also performs a number of secondary functions. It acts as a store of value, unit of account and standard of deferred payments.

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3 years ago
American​ Exploration, Inc., a natural gas​ producer, is trying to decide whether to revise its target capital structure. Curren
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Answer:

a) 9.00 %

b) 7.80 %

c) yes the weight of the debt increases here is more risk in the investment as the debt payment are mandatory and failing to do so result in bankruptcy while the stock can wait to receive dividends if the income statement are good enough

d) 9.00  %

e) The increase in debt may lñead to an increase in return of the stockholders if they consider the stock riskier than before and will raise their return until the WACC equalize at the initial point beforethe trade-off occurs

Explanation:

a)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

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Equity weight 0.5

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c)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

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d)

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3 0
3 years ago
Which type of facility layout is seen in the given example? George works as an operations manager for a machine manufacturer. Wi
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Answer: process

Explanation:just did the test on edmentum

4 0
2 years ago
Read 2 more answers
​Valley, Inc. has​ 9,000 shares of preferred stock outstanding. The preferred stock has a​ $90 par​ value, a​ 14% dividend​ rate
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Answer:

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The total dividends payable to holders of preferred shares can be computed thus:

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8 0
3 years ago
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Answer:

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The computation of the inventory to be purchased next month is shown below:

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3 0
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