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Whitepunk [10]
3 years ago
9

Exercise 6A-1 High-Low Method [LO6-10] The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical c

osts of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January 1,736 $ 4,127 February 1,904 $ 4,207 March 2,356 $ 5,083 April 960 $ 2,857 May 360 $ 1,871 June 744 $ 2,696 July 2,108 $ 4,670 August 2,406 $ 5,148 September 840 $ 2,691 October 124 $ 1,588 November 720 $ 2,454 December 1,364 $ 3,529 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) 2. What other factors in addition to occupancy-days are likely to affect the variation in electrical costs from month to month
Business
1 answer:
Nitella [24]3 years ago
4 0

Answer:

1) variable cost = $1.56 per day

fixed costs = $1,395 per month

2) another aspect that increases or decreases electrical consumption is the weather. During very hot days, more people use the air conditioner, which increases electricity costs. Very cold weather will result in a similar increase in electric consumption.

Explanation:

Month Occupancy-Days Electrical Costs

January 1,736 $ 4,127

February 1,904 $ 4,207

March 2,356 $ 5,083

April 960 $ 2,857

May 360 $ 1,871

June 744 $ 2,696

July 2,108 $ 4,670

<u>August 2,406 $ 5,148 </u>

September 840 $ 2,691

<u>October 124 $ 1,588 </u>

November 720 $ 2,454

December 1,364 $ 3,529

variable cost = (highest activity cost - lowest activity cost) / (highest activity level - lowest activity level) = ($5,148 - $1,588) / (2,406 - 124) = $1.56 per day

fixed costs = $5,148 - ($1.56 x 2,406) = $1,395

 

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"Scuba Diving." Marcy invented a new type of mask that was not subject to fogging forscuba divers and obtained a patent on it. S
weqwewe [10]

Answer:

The correct option is C,royalties

Explanation:

Royalties refers to payment received by the owner of  patent from the individuals making use of the patented design or product as a reward for creativity and originality.

Profits are excess of revenue over costs of doing business overall

Receipts are  inflows of cash and cash equivalents to the business either form sales transactions or from sources such as disposal of assets as well as issuance of shares.

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6 0
3 years ago
Acme Investors is considering the purchase of the undeveloped Baker Tract of land. It is currently zoned for agricultural use. I
Ahat [919]

Answer:

Office

Explanation:

Calculation to determine Which would be the highest and best use of this site

The analysis for the Baker Tract is as follows: OFFICE RETAIL

Rent 2,400,000 2,400,000

(100,000*$24=2,400,000)

Less Expenses (960,000) (1,200,000)

(2,400,000*40%=960,000)

(2,400,000*50%=1,200,000)

Cash Flow 1,440,000 1,200,000

(2,400,000-960,000=$1,440,000)

(2,400,000-$1,200,000=$1,200,000)

Cap Rate 0.10 0.11

(13%-3%=0.10)

(14%-3%=0.11)

Property Value 14,400,000 10,909,090

(1,440,000/0.10=14,400,000)

(1,200,000/0.11=10,909,090)

Construction Cost (10,000,000) ( 8,000,000)

(100,000*100=10,000,000)

(80,000*100=8,000,000)

Residual 4,400,000 2,909,090

(14,400,000-10,000,000=4,400,000)

( 10,909,090-8,000,000=2,909,090)

Therefore Based on the above calculation OFFICE would be the highest and best use of this site reason been that OFFICE has the HIGHEST amount of $4,400,000 compare to retail which has $2,909,090.

6 0
2 years ago
Who do you contact when its time to enroll in a repayment plan.
miv72 [106K]

Your loan servicer, or you could go to a financial aid website and go to the help/contact section, you may get a more straightforward answer from a professional

7 0
2 years ago
Bramble Corp. has $3960000 of 9% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value
natta225 [31]

Answer: Credit of $217480 to Paid-in Capital in Excess of Par

Explanation:

The following information is given in the question as:

Debit: Bonds payable = $1,250,000

Debit: Premium on bonds payable = $92480

Credit: Common stock = $1,125,000

Credit: Paid in capital in excess of Par = $217480

The above were calculated as:

Common stock = ($1250,000/$1,000) × 30 × 30

= $1250 × 90

= $1,125,000

% Conversion will be:

= $1,250,000 / $3960000 = 0.32

Unamortized bond premium will then be:

= 0.32 × $289,000

= $92,480

Paid in capital in excess of par will be:

= $1,250,000 + $92,480- $1,125,000

= $217,480

Therefore, the answer will be to

"Credit of $217480 to Paid-in Capital in Excess of Par"

4 0
2 years ago
Suppose Congress approves a proposed "temporary worker" program and American firms find
dybincka [34]

Answer:

The market for lettuce would be impacted in three ways: labor supply would increase, meaning that lettuce producers can now hire more workers for a lower price.

This cheaper labor would likely increase supply, because more producers would try to enter the market to take advantage of the cheap workers.

Finally, the lower labor costs, and the higer supply, would reduce the price of lettuce, meaning that consumers will be able to buy more lettuce for less money.

7 0
3 years ago
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