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meriva
3 years ago
12

Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to determine Smiths

on's fixed costs per month. Round your final answer to the nearest dollar. Do not round interim calculations. Cost Machine Hours January $26,300 10,000 February 36,700 18,400 March 28,400 12,400 April 31,400 14,900 a.$23,662 b.$44,541 c.$13,919 d.$11,135
Business
1 answer:
Snezhnost [94]3 years ago
6 0

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Cost - Machine Hours

January: $26,300 - 10,000

February: $36,700 - 18,400

March: $28,400 - 12,400

April: $31,400 - 14,900

Using the high-low method, first, we need to calculate the variable cost per unit. We need to use the following formula:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (36,700 - 26,300) / (18,400 - 10,000)

Variable cost per unit= $1.2381 per unit

Now, we can calculate the fixed costs:

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 36,700 - (1.2381*18,400)= 13,918.96= $13,919

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 26,300 - (1.2381*10,000)= $13,919

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Meginnis Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its ave
Ivan

Answer:

$53, 700

Explanation:

The question is not complete:

The completion is here:

6000 Units were produced and  determine the total amount of direct manufacturing cost incurred.

Step 1: Calculate the Direct Manufacturing Cost

Direct manufacturing cost is the cost of those input raw materials that are directly related to the product as well as the units being produced.

Direct Manufacturing Cost = (The Direct Material/ Unit + The Direct Labour/ unit) x Units Produced

= ($5,20 + $3.75) x 6000 units

= $8.95 x 6000 units

= $53, 700

Therefore, the direct manufacturing cost is $53, 700

6 0
3 years ago
Grace called a team meeting at her company to go over the results of her marketing research. Before walking through the results,
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Answer:

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5 0
3 years ago
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How can firms engage in non-price competition?
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Coupons and convenient locations
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You have spent weeks designing the project, gathering data and analyzing it. Now it is time to present your findings to senior e
Andrew [12]

Answer:

After spending weeks on a project, gathering data, followed by an analysis, when you are going to present your findings to the senior executes, In the very beginning of your report, in the executive summary, you can present and manifest and guide them about all the information, what they should know in making a decision

Explanation:

After spending weeks on a project, gathering data, followed by an analysis, when you are going to present your findings to the senior executes, you will have following 5 different course of actions;

Option 1: You can give them whole details through which you can have gone, meanwhile your discussion with the senior executives.

Option 2: Summary of the report in form of data tables can be provided without any recommendation and course of action suggested.

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Option 4: In the very beginning, in the executive summary of the report, you can present and manifest and guide them about all the information, what they should know in making a decision

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BEST POSSIBLE OPTION: As the senior executives are having very less time, therefore, it would be best for you present them with the information in the very beginning in the executive summary, in addition, all the information which they can consider to make a decision.

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5 0
4 years ago
g A department store chain has 15,100 shares of common stock outstanding at a price per share of $75 and a rate of return of 14%
horrorfan [7]

Answer:

10.79%

Explanation:

WACC = Pretax cost of debt*(1 - tax rate)*[(Number of bonds*Par value *selling price) / (Number of bonds*Par value*Selling price*Number of shares *Price per share)] + Rate of return*[(Number of shares*Price per share) / (Number of bonds*Par value*Selling price + Number of shares*Price per share)]

WACC = 0.065 *(1 - 0.29) * [(400*$1,500*98.2%) / (400*$1,500*98.2% + 15,100*$75)] + 0.14 x [(15,100*$75) / (400*$1,500*98.2% + 15,100*$ 75)]

WACC = 4.615%*[$ 589,200 / ($589,200 + $1,132,500)] + 0.14*[$1,132,500 / ($589,200 + $1,132,500)]

WACC= 4.615%*$589,200 / $1,721,700 + 0.14*$ 1,132,500/$ 1,721,700

WACC = 4.615%*0.342219899 + 14%*0.657780101

WACC =  1.579344834% + 9.208921415%

WACC = 10.79%

3 0
3 years ago
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