Problems1. What type of cost behavior (fixed, variable, or mixed) isdisplayed in each of the following?Volume 60007000Cost$34,500 $34,500Volume 50006000Cost$20,000 $24,000Volume 25004500Cost$12,000 $18,0002. Compute the Magnitude of Operating Leverage for thefollowing company:$900,000_(780,000)120,000(60,000)Income from Operations $60,000SalesVariable CostsContribution MarginFixed Costs

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1. What type of cost behavior (fixed, variable, or mixed) is displayed in each of the following? Volume 6000 7000 Cost $34,500 $34,500 Volume 5000 6000 Cost $20,000 $24,000 Volume 2500 4500 Cost $12,000 $18,000

1. What type of cost behavior (fixed, variable, or mixed) is displayed in each of the following? Volume 6000 7000 Cost $34,500 $34,500 Volume 5000 6000 Cost $20,000 $24,000 Volume 2500 4500 Cost $12,000 $18,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.16E

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Problems
1. What type of cost behavior (fixed, variable, or mixed) is
displayed in each of the following?
Volume 6000
7000
Cost
$34,500 $34,500
Volume 5000
6000
Cost
$20,000 $24,000
Volume 2500
4500
Cost
$12,000 $18,000
2. Compute the Magnitude of Operating Leverage for the
following company:
$900,000
_(780,000)
120,000
(60,000)
Income from Operations $60,000
Sales
Variable Costs
Contribution Margin
Fixed Costs

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