All categories

3 years ago

The high-low method calculates the total fixed cost as the: Group of answer choices

Business

1 answer:

MaRussiya [10]3 years ago

4 0

Answer:

c. difference between total variable costs and total costs at a particular activity level

Explanation:

The high low method consists of calculating costs on the basis of highest & lowest activity & comparing their corresponding total costs.

Variable cost per unit is found by : change in cost divided by the change in activity level for two points

Variable Cost per unit = <u>Highest activity cost - Lowest activity cost </u>

Highest activity units - lowest activity units

Fixed Cost is thereafter calculated by subtracting Total Variable Costs from Total Cost

Fixed Cost = Highest Activity Total Cost - [ (Variable cost per unit) x (highest activity units)

Fixed Cost = Lowest Activity Cost - [ (Variable cost per unit) x (lowest activity units)]

You might be interested in

Lincoln Park Co. has a bond outstanding with a coupon rate of 6.04 percent and semiannual payments. The yield to maturity is 6.1

Reil [10]

Answer:

value of the bond = $2,033.33

Explanation:

We know,

Value of the bond, $B_{0} = [I * \frac{1 - (1 + i)^{-n}}{i}] + \frac{FV}{(1 + i)^n}$

Here,

Face value of par value, FV = $2,000

Coupon payment, I = Face value or Par value × coupon rate

Coupon payment, I = $2,000 × 6.04%

Coupon payment, I = $128

yield to maturity, i = 6.1% = 0.061

number of years, n = 15

Therefore, putting the value in the formula, we can get,

$B_{0} = [128 * \frac{1 - (1 + 0.061)^{-7}}{0.061}] + [\frac{2,000}{(1 + 0.061)^7}]$

or, $B_{0} = [128 * \frac{1 - (1.061)^{-7}}{0.061}] + [\frac{2,000}{(1.061)^7}]$

or, $B_{0} = [128 * \frac{0.3393}{0.061}] + 1,321.3635$

or, $B_{0} = [128 * 5.5623] + 1,321.3635$

or, $B_{0} =$ $711.9738 + 1,321.3635

Therefore, value of the bond = $2,033.33

3 0

4 years ago

Hamilton justified establishing a national bank because he intended:

igomit [66]

Answer:

B. To encourage the wealthy to invest in the bank and become attached to the national government.

Explanation:

Alexander Hamilton proposed the idea of having a national bank and it was approved by the congress in 1791.

Hamilton justified establishing a national bank because he intended to encourage the wealthy to invest in the bank and become attached to the national government.

The national bank had $10,000000 (Ten million dollars) in capital.

7 0

4 years ago

Suppose the State bank of Pakistan instructs its Trading Desk to purchase Pkr 5 billion of securities. Analyze the result of thi

natima [27]

Answer:

In simple words, the transaction given in the question will result different for state bank and commercial banks. Assuming the securities will be purchased from the commercial banks, the balance sheet of commercial banks will decrease assets and will increase their cash balance, thus, resulting in overall no change balance on assets side.

On the other hand, the state bank will add securities on the asset side of the balance sheet and will decrease cash balance.

5 0

3 years ago

You have a portfolio valued at $10,000. Over the next twelve months it loses 50% of its value. What return does the portfolio ne

goldenfox [79]

Answer:

return = 100%

Explanation:

given data

portfolio valued = $10,000

time = 12 months

loses = 50%

solution

we get here loss value for next 12 month is

= $10,000 × 50% .....................1

= $10,000 × 0.50

= $5000

and

return will be here as

return = $\frac{5000}{5000}$ × 100 .......................2

return = 1 × 100

return = 100%

5 0

4 years ago

A firm has an operating profit (EBIT) of $600 on sales of $1,000. Interest expense is $250 and taxes are $120. What is the times

Nezavi [6.7K]

Answer:

2.4 times

Explanation:

The formula to compute the times interest earned ratio is shown below:

Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)

= $600 ÷ $250

= 2.4 times

In order to find out the times interest earned ratio, we divide the operating profit or earnings before interest and taxes by the interest expense so that it could come

8 0

4 years ago