Answer:
Fixed costs= $2,600
Explanation:
Giving the following information:
January 6,400 $5,980
February 7,000 $6,400
March 4,000 $5,000
April 6,900 $6,330
May 9,000 $8,000
June 7,250 $6,575
<u>To calculate the fixed costs under the high-low method, we need to use the following formulas:</u>
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (8,000 - 5,000) / (9,000 - 4,000)
Variable cost per unit= $0.6 per unit
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 8,000 - (0.6*9,000)
Fixed costs= $2,600
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 5,000 - (0.6*4,000)
Fixed costs= $2,600
Answer:
6.6
Explanation:
The formula and the computation of the times interest earned is shown below:
Times earned interest = (Earnings before income tax and interest expense) ÷ (Interest expense)
where,
Earnings before income tax and interest expense is
= $387,520 + $69,200
= $456720
And, the interest expense is $69,200
So, the times interest earned ratio is
= $456,720 ÷ $69,200
= 6.6
False
Duress is used to enforce a contract, not for the rescission of a contract.
