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yKpoI14uk [10]
3 years ago
9

The ABC Company had its highest level of production in May when they produced 4,000 units at a total cost of $110,000 and its lo

west level of production in November when they produced 2,500 units at a total cost of $87,500. Using the high-low method, the estimated variable cost per unit is $
Business
1 answer:
Sati [7]3 years ago
7 0

Answer:

$15

Explanation:

The computation of the estimated variable cost per unit by using high low method is shown below:

Variable cost per unit = (High total cost - low total cost) ÷ (Highest level activity  - lowest level activity)

= ($110,000 - $87,500) ÷ (4,000 units - 2,500 units)

= $22,500 ÷ 1,500 units

= $15

By applying the above formula we easily find the estimated variable cost per unit

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Lostsunrise [7]
<span>A fixed cost of $100,100 will not change. At 3 units per output at $5555 the cost per unit would be 5555 divided by 3 which equals 1851.66 per unit. When increased to 4 Units per week the Fixed cost will remain the same the variable cost should be 4 times 1851.66 per unit which would equal $7406.66. So we can either conclude that the variable cost increases per unit or that the question is false!</span>
6 0
4 years ago
Bikes and More just announced its next annual dividend will be $2.42 a share and all future dividends will increase by 2.5 perce
liq [111]

Answer:

13.5%

Explanation:

market rate of return can be calculated with below expresion

Current Price = D / (K - g)

Where

Current Price = $22 a share

D= Dividend in coming Year

dividend = $2.42

K= rate of return

g =growth rate

22 = 2.42 / (K - 0.025)

Cross multiply we have

22(K - 0.025)= 2.42

Open the bracket we have

22k- 0.55=2.42

2.42 + 0.55= 22k

K = 2.97 / 22

= 0.135

= 0.135×100%

= 13.5%

Therefore, the market rate of return if this stock is currently selling for $22 a share is 13.5

4 0
3 years ago
Identity errors, incorrect account details, and fraudulent accounts are the most common credit report errors. What should you do
Lostsunrise [7]

Answer:

The correct answer is letter "A": You should dispute the error with a credit agency or with a bank/lender and locate any receipts or other written proof that the data is not correct.

Explanation:

It is important to review your credit report frequently to spot errors. In such cases, you must the corresponding financial institutions to make the corrections necessary. If proof is needed you should send it. The objective is to <em>keep your information as accurate as possible</em> so your credit rating can increase every year.

4 0
3 years ago
Using threats and punishment is what type of theory management
AleksAgata [21]

Answer: McGregor's XY Theory of Management

Explanation:

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3 years ago
Read 2 more answers
Which of the following correctly orders the investments from LOWER risk to HIGHER risk?
Yuliya22 [10]
Here is the correct order of investments from Lower Risk to Higher Risk: <span> Treasury bond − Diversified mutual fund – Stock

Treasury bond is released by Government, so unless your country went bankrupt, it is safe to assume that you will get the investment back.

Diversified mutual fund puts your eggs in a lot of baskets So in case one of your investment fail, the others could still support your overall investments

Since the stock is a single entity and really fluctuative, it is considered as the most dangerous type of investment.

</span>
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4 years ago
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