Division Of Privacy And Identity Protection
Answer:
Fixed cost = $1100
Explanation:
given data
Highest bill = $3,800
lowest bills = $2,000
dog washed in May = 600
dog washed in November = 200
to find out
fixed cost associated with the company's water bill
solution
first we get here variable cost that is express as
variable cost = (Highest bill - Lowest bill) ÷ ( Dogs washed may - Dogs washed November ) ...........1
put here value we get
variable cost =
variable cost = $4.5 per dog
so fixed cost will be here as
Fixed cost = Total cost to wash 600 dogs - Variable cost to wash 600 dogs
Fixed cost = $3800 - $4.5 × 600 dogs
Fixed cost = $3800 - $2700
Fixed cost = $1100
Answer:
d. 9,200 units.
Explanation:
The computation is shown below for break-even points in units:
= (Fixed expenses ) ÷ (Contribution margin per unit)
where,
Fixed costs = $260,000 + $11,400 = $271,400
Contribution margin per unit = Selling price per unit - variable cost per unit
= $50 - $20.5
= $29.5
Now put these values to the above formula
So, the units would equal to
= $271,400 ÷ $29.5
= 9,200 units
The Answer Is...
T. (True)
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