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777dan777 [17]
3 years ago
15

Ajax Company presently leases a copy machine on a monthly basis. The lease agreement requires a fixed fee each month in addition

to a charge per copy. The Company made 2,400 copies and paid a total of $162 in lease payments in September. In October they made 3,500 copies and paid a total of $195 in lease payments. Using these two data points and the high-low method, determine the Company’s variable cost per copy.
Business
1 answer:
DedPeter [7]3 years ago
5 0

Answer:

Variable cost per copy =$ 0.03  

Explanation:

The high and low techniques helps to analyse a cost into its variable and fixed cost component.

The  formula is given below:\

Variable cost per copy = (cost at high act. - cost at low act)/(high act - low act)

Fixed cost = cost at high activity - (Vc/copy × high act)

VC per copy = ( 195 - 162)/(3500-2400) copies

                  =$ 0.03  per copy

Total fixed cost = 195 - (0.03× 3500)

                          = 195 - 105

                          =$90

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In 1-4 sentences, name and describe the three kinds of procedures in an economy.
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There are 3 types of producers in an economy.

Primary producers - Agricultural - raw materials and crops

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Tertiary producers - Services- this type of producer provides intangible services

7 0
3 years ago
A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera
algol13

Answer:

Total period cost= $174,800

Explanation:

<u>The period costs are all the costs not incurred in production. Usually includes administrative, marketing, finance costs, etc.</u>

Periods costs:

Variable selling and administrative expense= $5

Fixed selling and administrative expense $ 136,800

<u>To calculate the total variable cost, we will use the units sold:</u>

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3 years ago
Carolyn gets a bank loan in order to purchase new tanning beds for her salon. In terms of the factors of​ production, how would
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The answer is Capital.

8 0
3 years ago
Read 2 more answers
Cost behavior is useful to managers for all of the following except:__________.
Nina [5.8K]

Answer:

D

Explanation:

Cost behavior is defined as the measure of the reaction of the cost to outputs in production and sales volume.It reveals the impact of changes in activities on cost.

This helps the management in planning and controlling its costs and drive profits.

Cost behavior can be useful to the manager in deciding whether to replace a machine or not as the efficiency rate of a machine tends to reduce due to impairment , causing a rise in cost.

So also , it can be useful in predicting profits as sales and production volume changes and also to estimate cost.

5 0
3 years ago
Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
bekas [8.4K]

Answer:

$10, 950

Explanation:

What is the net operating income (loss) for the month under the variable costing?

Direct materials   $  20

Direct labour      62

Variable manufacturing overheads  8

Total variable costs    90

Sales ($120 x 8, 650)     $ 1, 038, 000

Variable expenses:

Variable cost of goods sold ($90 x 8650)    778, 500

Variable selling admin costs ($12 x 8, 650)   103, 800

Contribution margin      155, 700

Fixed expenses:

Fixed manufacturing overheads     135, 750

Fixed selling and admin       9, 000

Net operating profit      10, 950

7 0
3 years ago
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