Exercise 12-11 (Algo) Estimating costs based on behavior patterns LO 3Larry estimates that the costs of insurance, license, and depreciation to operate his car total $450 per month and that the gas,oil, and maintenance costs are 39 cents per mile. Larry also estimates that, on average, he drives his car 2,000 miles permonth.Required:a. How much cost would Larry expect to incur during April if he drove the car 1,519 miles? (Round your answer to 2 decimalplaces.)Answer is complete but not entirely correct.Total cost1,070.49b. Would it be meaningful for Larry to calculate an estimated average cost per mile for a typical 2,000-mile month?YesO No

a. The expected cost for the month of April is $1,042.41 Explanation: The total cost per month for…

Answered: - How much cost would Larry expec…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter16: Financial Planning And Control

Section: Chapter Questions

Problem 6PROB

See similar textbooks

Similar questions

Exercise 12-11 (Algo) Estimating costs based on behavior patterns LO 3 Larry estimates that the costs of insurance, license, and depreciation to operate his car total $450 per month and that the gas, oil, and maintenance costs are 39 cents per mile. Larry also estimates that, on average, he drives his car 2,000 miles per month. Required: a. How much cost would Larry expect to incur during April if he drove the car 1,519 miles? (Round your answer to 2 decimal places.) b. Would it be meaningful for Larry to calculate an estimated average cost per mile for a typical 2,000-mile month?multiple choice Yes no
Estimating costs based on behavior patterns Terry estimates that the costs of insurance, license, and depreciation to operate his car total $430 per month and that the gas, oil, and maintenance costs are 80 cents per mile. Terry also estimates that, on average, he drives his car 2,000 miles per month. Required:a. How much cost would Terry expect to incur during July if he drove the car 2,342 miles?b. Would it be meaningful for Terry to calculate an estimated average cost per mile for a typical 2,000-mile month? Explain your answer.
Question 29: Salazar Electronics Corporation makes cell phones. Their records for the month of March are as follows: 1600 units were sold Total Sales $800,000. Total Variable Costs $480,000. Total monthly fixed costs $200,000 Selling price for one unit (one cell phone) is $500. Variable cost of one unit is $300. Part A: Use the information provided above to prepare a Contribution Income Statement to show Net Income (5 points) Part B: What is the Contribution Margin? Answer in Dollars: (1 points) Part C: What is the Unit Contribution Margin? Answer in Dollars: (1 point) Part D: What is the Contribution Margin Ratio? Answer in % (2 point) Part E: What is the breakeven point? Answer in units or dollars: (2 points) Bonus: Part F: If the desired profit is $120,000., what is the target unit sales volume? Answer in units: (3 points)
Question 11 You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021. R R Unit selling price 160 Less: Direct materials 50 Direct labour 30 Fixed Overheads: Admin 4.00 Rent 7.50 Rates…
Question 7 You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021. R R Unit selling price 160 Less: Direct materials 50 Direct labour 30 Fixed Overheads: Admin 4.00 Rent 7.50 Rates…
Exercise 3 A company sells 200+a units of a product every week where a belongs to the interval [10. 100]. The fixed costs for buildings, machines and employees are $12,000+b a week with b in the interval [1,000; 20.0001, while raw material and other variable costs are $50+c a unit with c in the interval [1; 10]. (a) What is the profit if the selling price is $130 a unit? (b) What is the profit if the selling price is $80 a unit? (c) What is the profit if the selling price is fixed at $80 but sales rise to 450 units a week?
Question 23 You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021.                                                                                     R                                 R Unit selling price                                                                                            160 Less: Direct materials                                                 50            Direct labour                                                    30 Fixed Overheads: Admin                                                                         4.00 Rent                                                                            7.50 Rates…
Question 17 You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021.                                                                                     R                                 R Unit selling price                                                                                            160 Less: Direct materials                                                 50            Direct labour                                                    30 Fixed Overheads: Admin                                                                         4.00 Rent                                                                            7.50 Rates…
Question 4 You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021.                                                                                     R                                 R Unit selling price                                                                                            160 Less: Direct materials                                                 50            Direct labour                                                    30 Fixed Overheads: Admin                                                                         4.00 Rent                                                                            7.50 Rates…
Question 5 You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021. R R Unit selling price 160 Less: Direct materials 50 Direct labour 30 Fixed Overheads: Admin 4.00 Rent 7.50 Rates…
Question 4 Auto Tires, Inc. sells tires to service stations for an average of $145 each. The variable costs of each tire is $85 and monthly fixed manufacturing costs total $45,000. Other monthly fixed costs of the company total $15,000. Note: No need to enter comma between number Required: 1. What is the break-even level in tires? 2. What is the margin of safety, assuming sales total $190,000? 3. What is the break-even level in tires, assuming variable costs increase by 20 percent and selling price increase by 17 per unit ? 4. What is the break-even level in tires, assuming the selling price goes up by 20 percent, fixed manufacturing costs decline by 10 percent and other fixed costs decline by $1500and variable cost decrease by 1 per unit ?
QUESTION 9 You plan on starting a lawn mowing business by investing $700 of your own money and purchase $500 of equipment. You plan to work 260 hours per month and charge your customers $22 per hour. Your anticipated costs include: Depreciation Advertising Gas Assistant's Wages Miscellaneous Expenses $25.00 per month $26.00 per month $1.20 per hour $8.00 per hour $20.00 per month Calculate your Variable cost per hour on the budgeted contribution margin income statement. 1

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS

- How much cost would Larry expec laces.) Answer is complete but not ent Total cost 1,070.49