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8_murik_8 [283]
4 years ago
14

The Connors Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixe

d or variable. Connors Company has heard about a method of measuring cost functions called the highminuslow method and has decided to use it in this situation. Cost Hours $ 22 comma 000 5 comma 500 $ 26 comma 900 6 comma 250 $ 35 comma 000 7 comma 750 $ 40 comma 000 10 comma 300 $ 38 comma 600 9 comma 200 What is the cost​ function?
Business
1 answer:
Scilla [17]4 years ago
5 0

Answer:

The cost function is:  

Mixed cost =  3.75x + 1375

Explanation:

A mixed cost is a cost that contains an element of both the fixed and the variable cost in it. The variable element per unit in a mixed cost can be calculated using the high low method. The formula for variable cost per unit under the high low method is,

Variable cost per unit = ( Cost at highest activity level - Cost at lowest activity level)  /  ( units of highest activity level - units of lowest activity level)

The units of activity level here are <u>hours</u>. The highest activity level here is 10300 hours and the lowest activity level here is 5500 hours.

The variable cost per hour = (40000 - 22000)  /  (10300 - 5500)

Variable cost per hour = $3.75

The total fixed cost in this mixed cost =   22000  -  (3.75 * 5500)  = $1375

Thus the cost function is =   3.75x + 1375

Where x is the number of hours

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Tucker Electronic System's current balance sheet shows total common equity of $3,125,000. The company has 125,000 shares of stoc
Airida [17]

Answer:

The answer is $27.50

Explanation:

Total Common Equity(stock) as per book is $3,125,000

Total outstanding shares of equity(stock) is 125,000

Therefore, Tucker Electronic System's book values per share is:

$3,125,000/125,000

$25.

And the market value per share is $52.50

Therefore, the difference between the market value per share and book values per share is:

$52.50 - $25

=$27.50

4 0
4 years ago
Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of b
kvasek [131]

Answer:

$20,450

Explanation:

With regard to the above, the adjusted cash balance would be computer as;

= Bank balance + deposits in transit - outstanding checks

= $19,400 + $6,550 - $5,500

= $20,450

or

= Bank balance - service fees - NSF checks

= $21,525 - $70 - $1,005

= $20,450

8 0
3 years ago
You hire an experienced pet industry executive to consult with you both throughout the process. In your first meeting, she prese
Lisa [10]

The correct answer is B; Specialty store.

Further Explanation:

Since the client hired a pet industry consultant you can guess that the store is about pets. The market analysis and trend report will show how much stores with pet supplies makes per month/year.

The client is opening their first store and will not want to open a superstore right out of the gate. Since they will not be known to many and it is worded like it an individual opening the store by themselves.

A category killer store is a like a franchise or chain store. For example, a Home Depot or PetSmart. The client will not want to do this either since it takes a lot of capital and lengthy process to achieve.

The client will want to go with a specialty store to build up a customer base and focus on the items they want to bring to new customers. A specialty store will bring in the clientele that they are targeting. The specialty store will have items that larger stores do not have and can carry homemade items also.

Learn more about specialty stores at brainly.com/question/11950122

#LearnwithBrainly.

5 0
3 years ago
In the 1980s, the U.S. government budget deficit rose. At the same time the U.S. trade deficit grew larger, the real exchange ra
givi [52]

Answer:

None of the above is contrary to the predictions of the model.

Explanation:

The budget deficit is when the government spends more than the revenue it makes. Based on the information given, the trade deficit of the United States will grow.

Furthermore, the real exchange rate of the dollar will appreciate and the net capital outflow of the United States will fall as imports will be more than goods exported.

Therefore, the correct option is "None of the above is contrary to the predictions of the model".

7 0
3 years ago
The Horizon Company will invest $84,000 in a temporary project that will generate the following cash inflows for the next three
GarryVolchara [31]

Answer:

The net present value is $3,624

Explanation:

Net present value is the sum of all cash inflows and outflows in present value terms. It is calculated by discounting each cash flow with given interest rate and for specified period of time.

Net present value of this project is $3,623.84

All the workings and calculations are made in an MS Excel File which is attached with this answer.

Download xlsx
7 0
3 years ago
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