Which inventory method results in the highest net income during periods of falling prices?

Kallie Smith, owner of Flower Hour, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charg

user100 [1]

Answer:

Use the high-low method to determine Flower Hour's cost equation for van operating costs.

total cost = $1,355 + ($0.25 x total miles)

Use your results to predict van operating costs at a volume of 15,000 miles.

total cost (15,000 miles) = $1,355 + ($0.25 x 15,000) = $5,105

Explanation:

Month Miles driven Van Operating Costs

January 15,800 $5,460

February 17,300 $5,680

March 14,600 $4,940

April 16,000 $5,310

May 17,100 $5,830

June 15,400 $5,420

July 14,100 $4,880

high cost - low cost = $5,680 - $4,880 = $800

high cost - low cost = 17,300 - 14,100 = 3,200 miles

variable cost per mile = $800 / 3,200 miles = $0.25 per mile

total variable cost when driving 14,100 miles = 14,100 miles x $0.25 per mile = $3,525

total fixed cost = $4,880 - $3,525 = $1,355

total cost = $1,355 + ($0.25 x total miles)

total cost (15,000 miles) = $1,355 + ($0.25 x 15,000) = $5,105

5 0

2 years ago

Why are junk bonds more popular during a bear market?

Dominik [7]

Many times junk bonds are a high risk bond, but are also a high return. They are more popular during a bear market for this reason only. Sine they have a high return it compensates for the high risk. The junk bonds can also help a persons personal portfolio. Junk bonds also issues with a 10 year term or less. A bear market is when there is a steady drop or stagnation in the market over a period of time.

6 0

3 years ago

Read 2 more answers

Sanctions are a type of trade restriction that is ineffective in forcing change in other countries.

Nikolay [14]

The answer to this question is False. Sanctions do not only rarely achieve their goal of forcing change in the targeted country, but they also tend to produce collateral economic damage in the nations that do apply them.

3 0

3 years ago

A manager experiences a cashier shortage that averages $50. 00 per day. if the manager's operation is open 360 days per year, wh

ad-work [718]

A manager experiences a cashier shortage that averages $50. 00 per day. if the manager's operation is open 360 days per year, 1800 will be this manager's annual revenue loss due to cashier shortages

In colloquial language, the average is a single number representing a list of numbers, usually the sum of the numbers divided by the number of numbers in the list. For example, the average of the numbers 2, 3, 4, 7, and 9 is 5.

Suppose there are four types of means: mean, mode, median, and range. In fact, the range is a measure of spread or spread, while others are the most common "measure of central tendency".

Noun. Mean, Mean, Median, Standard means something that represents the midpoint. The average is the quotient obtained by dividing the sum of a set of numbers by the number of numbers. scored an average of 85 points on the test. The mean is the simple mean or the middle value between the two extremes.

In colloquial language, the average is a single number representing a list of numbers, usually the sum of the numbers divided by the number of numbers in the list. For example, the average of the numbers 2, 3, 4, 7, and 9 is 5.

Suppose there are four types of means: mean, mode, median, and range. In fact, the range is a measure of spread or spread, while others are the most common "measure of central tendency".

Noun. Mean, Mean, Median, Standard means something that represents the midpoint. The average is the quotient obtained by dividing the sum of a set of numbers by the number of numbers. scored an average of 85 points on the test. The mean is the simple mean or the middle value between the two extremes.

Learn more about averages here

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5 0

1 year ago

A person is mad at their roommate so out of spite they decide to intercept a credit card offer in the mail, and fill it out in t

Rudik [331]

Answer:

The correct answer is letter "B": identity theft .

Explanation:

Identity theft refers to the act of using other people's information to obtain usually a financial advantage. Full names, social security numbers, phone numbers or any other individual information is stolen from others to be used in favor of the criminal.

8 0

2 years ago