Answer:
The variable maintenance cost per unit would be $8.33 and the total fixed maintenance cost would be $267
Explanation:
The computation of the fixed cost and the variable cost per hour by using high low method is shown below:
Variable maintenance cost per unit = (High maintenance cost - low maintenance cost) ÷ (High level of activity - low level of activity)
= ($1,100 - $600) ÷ (100 direct hours - 40 direct hours)
= $500 ÷ 60 direct hours
= $8.33
Now the fixed cost equal to
= High maintenance cost - (High level of activity × Variable maintenance cost per unit )
= $1,100 - (100 direct hours × $8.33)
= $1,100 - $833.33
= $267
Answer:
$190,000
Explanation:
Regis produces 30,000 plugs per year and its overhead costs are $8, so their variable costs are $28 per plug (=$36 - $8).
Orlan offers to sell them the same plugs at $33 per plug, which means that Regis will be paying $5 more per plug than its own variable costs.
Regis costs will increase $5 x 30,000 = $150,000 per year.
Its fixed costs will decrease by $60,000 if they decide to purchase the plugs.
Plus it can rent the facilities at XXX per year? since it plans to have $100,000 in net savings per year:
$100,000 = $60,000 + XXX - $150,000
$100,000 = XXX - $90,000
XXX = $190,000
Answer and Explanation:
The computation is shown below:
Reference base year is 2000 and as it's the base year, So the CPI is 100.
Now
The prices have risen by 187% by 2016 means the CPI is
= 100 + 187% of 100
= 287.
And,
There is 3.4% inflation in 2017 that means prices have increased by 3.7% in 2017 compared to 2016.
Now
CPI is 287 + 3.4% of 287
= 296.758
CPI in 2017 = 296.758
In 2018, inflation is 3.7%,
CPI = 296.758 + 3.7%
= 307.74
CPI in 2018 = 307.74
In 2019, CPI is 318, which is approx 3.3% higher than as compared to the year 2018 so
Brazil's cost of living rised in 2019.
CPI of Brazil in 2017 is 296.76
CPI of Brazil in 2018 is 307.74
So,
Brazil's cost of living increases every year
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