Variable Cost and Net Operating Income

1.) What is the marginal cost estimate of the Phase 4 hospital services, assuming that 60 percent of the designated costs are fixed and the remaining costs are variable?

7) NCC is considering the purchase of two new dryers(each costs $10000, the cost includes installation cost) and conversion of up to 10 dry berry holding bins (each costs $2000, that includes labor and material cost) so that they can hold water-harvested or dry berries. What are your recommendations? Assume that drivers are paid $12 per hour.

2.) For each expense that is variable with respect to revenue hours, calculate the cost per revenue hour.

Blanco Company estimates that its variable manufacturing overhead (all requiring cash expenditures) is $32 per direct labor hour. The total fixed manufacturing overhead of $1,881,120 per month includes depreciation on the factory building of $120,000 per month and depreciation on the factory equipment of $30,000 per month for total depreciation of $150,000 per month. (Thus, the cash spent for fixed manufacturing overhead is $1,731,120 ($1,881,120 – $120,000 – $30,000) per month.) Cash disbursements for manufacturing overhead occur in the same month in which the company incurs the cost. Be sure to show the calculation of the average predetermined overhead rate for the quarter as a whole only—total budgeted manufacturing overhead cost

The following formula defines the relationship between the level of electricity produced (P) as a function of Average Wind Speed (AWS) during the period. For 10 ≤ AW S ≤ 90, P = AW S × K and 0 otherwise. Assume K = 1. Revenue (R) is calculated as: R = P × Tariff where Tariff (T ) varies with the production level according to the following formula: T = 50 + 1000 P

An estimated $510 a month was calculated as the cost to live in the house ,I plan on providing at least 50% of the cost of living totaling $255 .This estimate is fair as I have average at least $600 is gross revenue a month.

Clinical labor costs are the primary expense of the clinic. During the high season (December through March), these costs run $150,000 a month, but some of the clinical staff work only seasonally, so clinical labor costs drop to $120,000 a month in the remaining months (Gapenski and Pink, 2009). The clinic pays fixed general and administrative expenses, including clerical labor, of approximately $30,000 a month, while lease obligations amount to $12,000 per month. These expenditures are expected to continue at the same level throughout the forecast period. The clinic’s miscellaneous expenses are estimated to be $10,000 monthly.

Cost of rent during our first year will be $60,000. Year 2 will be increased to $61,800 and by year 3 it will be $63,654.00. Equipment expense will be year 1- $1,000, year 2-$1,030, and year 3- $ 1,061. Telephone expenses are year 1 -$2,000, year 2- $ 2,060, and year 3-$2,122. Insurance will cost $50,000, for year 2 $51,500 and year 3 $53,045.00. The cost for heat and water will not count in our expenses, as it will be in our contract to have this included within the rent for the first three years. As for Internet and telephone, the cost will be $2,000.00 per year.

The Standard Error of the Estimate is a quite significant portion of the possible predicted values

The estimate of total potential market for heater/blower unit is 2737 units and 2737000 units for blankets (see exhibit 1). The direct cost of the heater/blower unit would be $380 and $0.85 per blanket. The initial investment, $500,000, for this system would cover the fixed cost of the company during first year of operation. Based on this basic information and other considerations, the company has to determine its pricing strategy for both

For the 175 room Home2Suites Airport hotel, the total development cost is $21.6 million and total cost per room is $123,429. All data is based on the Home2Suites Hotel and all costs are based on the 2017 dollar. Based on the parameters of the primary client meeting, the debt to equity ratio was set up as 80/20, initial investment would be $4.3 million dollars with the 80/20 ratio. The remaining $17.2 million dollars would be financed with a 6.95% interest rate through a 25-year mortgage term.

These income statements were how Lee High fashioned his decision rules to implement in the pricing of ¡¥Great Heath.¡¦ Unfortunately for Lee, he did not take into consideration all of the expenses when he figured his per unit cost. As best as we can determine, Lee utilized the ¡¥High-Low¡¦ method when he was calculating his costs. Lee took only the change of cost of goods sold between week 1 and week 3 into consideration when figuring his variable costs. He also relied upon his

1. (TCO C) The following overhead data are for a department of a large company.

"Using the high-low method, estimate a cost formula for power cost. Express the formula in the form Y 5 a 1bX".

Strictly speaking, the revenue recognized in method 1 is not earned in THIS YEAR. through the method of estimating the electricity usage in December this year, added by the actual usage of former 11 months, we can get record the revenue and then do some adjustment in the next year.