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tensa zangetsu [6.8K]
3 years ago
14

Jamieson Enterprises has presented the following information for the past year of operations Month Units Total Cost January 2,80

0 $ 9,200 February 3,500 $ 11,300 March 1,900 $ 6,500 April 2,700 $ 8,900 May 4,500 $ 14,300 June 5,300 $ 16,700 July 7,200 $ 22,400 August 5,100 $ 16,100 September 4,700 $ 14,900 October 3,900 $ 12,500 November 3,400 $ 11,000 December 2,400 $ 8,000 a. Using the high-low method, calculate the fixed cost per month and variable cost per unit. b. What would total costs be for a month with 8,200 units produced?
Business
1 answer:
aivan3 [116]3 years ago
3 0

Answer:

a.

VC/unit = $3 per unit

Fixed Cost = $800

b.

Total Cost = $25400

Explanation:

a.

The high-low method is used to separate the components of a mixed cost and it calculates the variable cost component in a mixed cost. The formula to calculate the variable cost per unit under the high-low method is as follows,

VC/unit = [Highest Activity cost - Lowest Activity Cost] / [Highest Activity units - Lowest Activity units]

VC/unit = [22400 - 6500] / [7200 - 1900]

VC/unit = $3 per unit

Using figures from March, The total fixed costs will be,

Fixed cost = 6500 - [3 * 1900]

Fixed Cost = $800

b.

Total cost in a month with 8200 units will be,

Total Cost = Total Fixed cost + Total variable costs

Total Cost = 800 + (3 * 8200)

Total Cost = $25400

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Opportunity costs are the benefits lost or extra costs resulting from choosing one activity or investment over another.

If you choose to build and sell microwaves, you will not be able to invest in bonds, and therefore, your net income will decrease by $25,000 - $50,000 = -$25,000.

Instead, if you invest in bonds and not microwaves, your net income will increase by $50,000 - $25,000 = $25,000.

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Which of the following is the federal agency charged with protecting consumers from "unreasonable risks of injury and death" fro
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The correct answer is option A.

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A new income statement for August for Swift company is shown below.

Also, since the president has asked you to check over the income statement and make a recommendation as to whether the company should look for a buyer for its assets.

My recommendation would be to not buy.

                                            Swift Company

                                         Income Statement

                               For the Month Ended August 31

Particulars                                                   Amount (in $)    Amount (in $)

Sales ..............................................................                          450,000

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Net operating income......................................                           18,000

Sam failed to distinguish between product costs and period costs when preparing the August income statement, and he also failed to recognize changes in inventories between the beginning and end of the month.

Once these errors are corrected, the company's financial situation looks much better, and selling the company may not be a good idea.

Hence, my recommendation would be not to buy.

Learn more about income statement:

brainly.com/question/24498019

#SPJ4

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