Answer:
Variable cost per unit= $0.5 per inspection
Explanation:
Giving the following information:
The costs ranged from $4,400 for 1,400 inspections to $4,200 for 1,000 inspections.
<u>To calculate the variable cost under the high-low method, we need to use the following formula:</u>
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (4,400 - 4,200) / (1,400 - 1,000)
Variable cost per unit= $0.5 per inspection
Answer:
scarcity, tradeoffs, efficiency, and opportunity costs.
Answer:
An increase in demand
Explanation:
At equilibrium quantity, there is no excess or shortage in supply. The quantity supplied match with quantity supplied. The equilibrium price is the prevailing market price where there no excess or shortage in demand or supply. At the equilibrium point, Both suppliers and buyers are happy with the current price and quantity supplied.
An increase in demand will make suppliers increase supply to meet the new high demand. As demand increases, prices tend to rise. An increase in demand, therefore, cause the equilibrium price and quantity to increase.
Answer:
$18,100
Explanation:
The bond is issued on discount when the issuance price is less than the face value of the bond. The discount is amortized over the period until maturity. Total Interest expense on a discounted bond is the sum of the coupon payment and the amortization of the discount amount.
Coupon payment = $570,000 x 6% = $34,200 per year = $17,100 semiannually
Discount on the bond = $570,000 - $560,000 = $10,000
Discount amortized per year = $10,000 / 5 = $2,000 annually = $1,000 semi-annually
Total Interest Expense = Coupon Payment + Amortization of Discount
Total Interest Expense = 17,100 + 1,000 = $18,100
