Answer:
Y= 6000 + 0.75X
Explanation:
High and low cost technique
Using the a high and low technique, total cost can be analysed and separated into fixed and variable portion. This analysis helps in the forecast of cost and therefore important for the preparation of budget.
<em>Variable cost of maintenance</em> 
= (Cost at high activity - Cost at low activity)/ (high activity - low activity)
VC per act. = ( $15000 - $12000)/(12,000-8000)
                    = $0.75 per activity
<em>Fixed cost of maintenance</em>
 = Total cost at high activity - (VC per act × high activity)
=  $15,000 - ( $0.75 ×  12,000)
=   $6,000
The cost formula will be:
Y= 6000 + 0.75X
Where Y = maintenance cost, X= level of activity
 
        
             
        
        
        
Answer:
The amount in September would Excom debit Product Warranty Expense is $805
Explanation:
According to the given data In order to calculate the amount in September would Excom debit Product Warranty Expense we would have to make the following calculation:
Product warranty expense
= 700 radios * 5% * cost per radio $23
Product warranty expense
=35*$23
Product warranty expense
=$805
The amount in September would Excom debit Product Warranty Expense is $805
 
        
             
        
        
        
Answer:
PED= 0.1571
Explanation:
The price elasticity of demand (PED) indicates how the quantity demanded change when the price changes. Is defined by this equation:  
Price Elasticity of Demand = Percentage change in Q/ Percentage change in P  
In this case, the problem is giving percentage changes in Q but we must calculate the percentage change in price:
%Change in price = ( p2-p1/p1)*100= ($4.09-$2.96)/$2.96= 0.3817*100=38.17%
%Change in quantity is= -6%
PED= -6%/38.17%
In absolute value:
PED= 0.1571
If the PED is less than 1 then gasoline is considered as inelastic.