Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a charge for each copy made. The company uses the high-low method to analyze costs and Markson paid $360 for 5,000 copies and $280 for 3,000 copies, PLEASE NOTE #1: Costs per unitdollar amounts will be rounded totwo decimal places and shownwith "$" and commas as needed(i.e. $12,345.67).PLEASE NOTE #2: Total costsdollar amounts will be wholedollars and shown with "$" andcommas as needed (i.e. $12,345).You may want to use the EXCELspreadsheet I provided in thisweek's module Chapter02 High-Low.xlsx to calculate theanswers to these questions.What is the variable cost per copy?How much would Markson pay if itmade 7,500 copies?

Variable cost per copy using high-low method (Highest Cost - Lowest Cost) / (Highest No. of Copies -…

Answered: Markson and Sons leases a copy machine…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 7PB: Please use the information from this problem for these calculations. After grouping cost pools and...

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Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a charge for each copy made. The company uses the high-low method to analyze costs and Markson paid $360 for 5,000 copies and $280 for 3,000 copies,

PLEASE NOTE #1: Costs per unit
dollar amounts will be rounded to
two decimal places and shown
with "$" and commas as needed
(i.e. $12,345.67).
PLEASE NOTE #2: Total costs
dollar amounts will be whole
dollars and shown with "$" and
commas as needed (i.e. $12,345).
You may want to use the EXCEL
spreadsheet I provided in this
week's module Chapter02 High-
Low.xlsx to calculate the
answers to these questions.
What is the variable cost per copy?
How much would Markson pay if it
made 7,500 copies?

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