Answer:
The estimated fixed cost element of power costs is $10,000
Explanation:
For computing the fixed cost first we have to calculate the variable cost per unit which is shown below:
= (High power cost - low power cost) ÷ (High machine hours - low machine hours)
= ($22,000 - $15,000) ÷ (12,000 - 5,000)
= $7,000 ÷ 7,000
= $1
Now the fixed cost would be
= (High power cost) - (high machine hours × variable cost per unit)
= $22,000 - 12,000 × $1
= $22,000 - $12,000
= $10,000
Answer:
Objs. 4 For business communications it is essential to express ideas and facts eloquently. The shorter the sentences and paragraph are, the brief the letter, memo or notice. This will save the reader's and writer's time.
