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soldier1979 [14.2K]
3 years ago
5

At a production level of 5,150 units, a project has total cash costs of $130,789. The variable cost per unit is $11.07, and the

depreciation is $8,600. What is the amount of the total fixed costs?a. $56,204.09 b. $65,178.50 c. $78,992.11 d. $73,778.50e. $68,626.67
Business
1 answer:
Sphinxa [80]3 years ago
3 0

Answer:

d. $73,778.50

Explanation:

Variable Cost = $11.07 per unit x 5,150 units = $57,010.50

Total Cost = $130,789

Fixed Cost = Total Cost - Variable Cost

Fixed Cost = $130,789 - $57,010.50

Fixed Cost = $73,778.50

Since Depreciation is the Fixed Cost and we have been given the Total Cost of the Project, so the Depreciation is already included in the Fixed Cost.

Hence Total Fixed Cost is equal to $73,778.50.

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Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year
puteri [66]

Answer:

Net operating income $ 35,000 on  variable costing income statement

Net operating income $ 35,000 on absorption costing income statement

Explanation:

Whitman Company

Income Statement

Variable Costing

Sales (35,000 units × $25 per unit) $ 875,000

Variable Costs

Direct materials $ 5× 35,000 units $ 175,000

Direct labor $6× 35,000 units  $ 210,000

Variable manufacturing overhead $1× 35,000 units $ 35000

Variable selling and administrative expenses $ 2× 35,000 units $ 70,000

Total Variable Costs = $ 14 * 35000     $ 490,000

Contribution Margin                                $ 385,000  

Less

Fixed Overheads       $4 * 35,000= $ 140,000            

Fixed Selling and administrative expenses    $280,000- $70,000= $ 210,000

Net operating income $ 35,000

Whitman Company

Income Statement

Sales (35,000 units × $25 per unit) $ 875,000

Cost of goods sold (35,000 units × $16 per unit) 560,000

Gross margin 315,000

Selling and administrative expenses 280,000

Net operating income $ 35,000

The company’s selling and administrative expenses consist of $210,000 per year in fixed expenses and $2 per unit sold in variable expenses. The $16 unit product cost given above is computed as follows: Direct materials $ 5 Direct labor 6 Variable manufacturing overhead 1 Fixed manufacturing overhead ($160,000 ÷ 40,000 units) 4 Absorption costing unit product cost $ 16

7 0
3 years ago
An opera house is offering three performances and has two types of consumers. The performances are "Carmen," "Madama Butterfly,"
Likurg_2 [28]

Answer: Bundle all the three operas together

Explanation:

Customers purchase a good only if its price is less than the customer’s reservation price.

Total WTP of consumer 1 = 100 + 200 + 70 = 370

Total WTP of consumer 2 = 120 + 100 + 150 = 370

Hence, all the three operas should be bundled together.

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Over the past two years a cloud service consumers have made 24,531 attempts to invoke a cloud service's reporting capability. of
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The reliability rating of the cloud service is about <span>93.37%.</span>
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3 years ago
Laws Corporation is considering the purchase of a machine costing $16,000. Estimated cash savings from using the new machine are
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Answer:

14%

Explanation:

Let IRR from machine be represented with i

Now, $4,120 * Cumulative PV factor (i, 6 periods) = $16,000

Cumulative PV factor (i, 6 periods) = $16,000 / $4,120

Cumulative PV factor (i, 6 periods) = 3.883

Now, we refer to PV factor table, the PV Factor (3.883) falls nearest to i =14%. (See proof in the attached table as attached below)

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What role is often mistakenly perceived as the same as a copyeditor?
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Senior copy editor, i believe
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