On a scattergrap, the diagonal line cuts across two sets of observations, namely: 600:200, and 900:500 which refer to costs and units, respectively. The fixed costs is plotted in the graph at P400. In this case, the variable cost per unit is equal to: a. P1.00 b. P1.25 c. P1.50 d. P1.12
Q: Given the output (quantity), total fíxed cost and total cost (in RO) in the following table:-…
A: Calculate the total variable cost as follows: The total variable cost can be obtained by reducing…
Q: If sales are $22,000, variable costs are $8,000, and fixed costs are $2,500, the contribution margin…
A: The contribution margin ratio shows the percentage of sales revenue remaining after the business has…
Q: Fill in the blanks for each of the following independent cases. E (Click the icon to view the…
A: General Introduction: Operating Income = Revenue - Total cost Total cost = Variable cost + Fixed…
Q: If Actual sales are OMR 490000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and…
A: Actual sales = OMR 490000 Total fixed cost = OMR 135000 Selling price per unit = OMR 50 Variable…
Q: Cost of the three alternative methods are stated below: A-Manual: Total fixed cost PM=3,000…
A: Indifference point is a point where the total cost of the given two alternatives are being equal.…
Q: The left column lists several cost classifications. The right column presents short definitions of…
A: Fixed Cost: Fixed cost refers the cost which remains constant for particular time duration and there…
Q: PERIOD 1 2 3 4 5 COST P45,000 69,500 49,550 39,400 55,500 59,000 41,500 UNIT 5,000 8,500 5,650 4,200…
A: The high-low method is used to differentiate the mixed cost. The mixed cost is the combination of…
Q: If sales are $828,000, variable costs are 68% of sales, and operating income is $278,000, what is…
A: solution note Dear student as per the Q&A guideline we are required to answer the first question…
Q: For the contribution margin analysis, select a price for each service. Determine the variable cost…
A: Target profit is a profit that the company wishes to obtain by changing certain variables like sales…
Q: Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and…
A: High low method: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest…
Q: Your boss would like you to estimate the fixed and variable components of a particular cost Actual…
A: The least-squares regression method is a technique used to estimate a linear total cost function,…
Q: On a CVP graph, the total cost line intersects the vertical (dollars) axis at the origin. the level…
A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…
Q: Given the following information, choose the cost and activity that would be used as the high data…
A: Solution... Using the High low method for finding variable cost and the fixed costs the Highest…
Q: Which costing method, absorption or variable, would show higher operating income and by what amount?…
A: The difference of net income between absorption and variable costing occurs due to only fixed…
Q: Which of the following statements regarding graphs of fixed and variable costs is true? (01) (a)…
A: Variable costs means those type of costs which change in same direction in respect to production. If…
Q: On a CVP graph, the total cost line intersects the vertical (dollars) axis at a. the origin. b. the…
A: Definition: Cost-volume profit analysis: CVP analysis is a tool of cost accounting that measures…
Q: Which of the following statements regarding graphs of fixed and variable costs is true? (a)…
A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…
Q: When fixed costs are $18,000 and the contribution margin per unit is $4, the breakeven point is
A: Breakeven point is the point at which total revenue is equal to total costs. It is calculated as:…
Q: If the total fixed costs Omr 75000, variable cost per unit Omr 15 and contribution margin per units…
A: Solution: Break even point (units) = Fixed cost / Contribution margin per unit = 75000 / 25 = 3000…
Q: Suppose that the cost of producing X units of a product in a manufacturing company is F + VX where F…
A: Under the high low method, it separates the fixed as well as variable costs which is given for the…
Q: a) Determine the variable cost per unit and the fixed cost using the high-low method. b) What is the…
A: High-low method: The high-low method considers only two data points, that is, the highest point and…
Q: Required: A. Classify each of the costs as being either variable, fixed, or semivariable. B.…
A:
Q: A firm manufactures a product that sells for $11per unit. Variable cost per unit is $6 and fixed…
A: Question is based on the concept of Corporate finance
Q: 7. Which of the following charts best represent total variable costs? For each chart, the line…
A: Total variable cost which increases when number of production units increases I.e changing of…
Q: Analyzing Income under Absorption and Variable Costing
A: Variable costing income statement The variable costing income statement is a statement prepared by…
Q: hich of the following statements related to CVP chart is not true? To determine the variable cost…
A: This option is not true :- E. The intercept between the total cost line on a graph and the y axis…
Q: Which of the following statements related to CVP chart is not true? O a. None of the given answers.…
A: The question is multiple choice question.The question is related to cost volume profit analysis.…
Q: Convert the following scores of different alternatives of a cost attribute to profit scores, each on…
A: Given:We have to convert the following cost scores to profit scores.Each of scale of 1 to10:…
Q: If Actual sales are OMR 490000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and…
A: Total fixed cost = OMR 135000 Selling price per unit = OMR 50 Variable cost per unit = OMR 35 Actual…
Q: If Actual sales are OMR 620000, Total Fixed costs OMR 115000, Selling price per unit OMR 60, and…
A: The margin of safety sales are calculated as difference between current sales and break even sales.…
Q: In linear breakeven analysis, if process A has a variable cost of $45 per unit and process B has a…
A: Breakeven point is the point where the total cost matches the total revenue. There is no situation…
Q: Wildhorse Company has a unit selling price of $730, variable costs per unit of $500, and fixed costs…
A: Break-even-point is a point where the company suffers no gain and no loss. If a company sale below…
Q: Newport, Inc. used Excel to run a least-squares regression analysis, which resulted in the following…
A: Regression analysis seems to be a statistical tool for analyzing and comprehending the connection…
Q: Cullumber Company accumulates the following data concerning a mixed cost, using miles as the…
A: Formulas: Variable cost per unit = Change in total cost / Change in miles -----------------------…
Q: If Actual sales are OMR 600000, Total Fixed costs OMR 150000, Selling price per unit OMR 50, and…
A: Margin of safety sales means sales revenue over and above breakeven sales revenue. Margin of Safety…
Q: Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate…
A: Solution:- Given, Project cost = $2,190,000 years of life = 8 No salvage value Sales units = 91,200…
Q: ing the following data, apply the high-low method of cost analysis to the three cost data groups:…
A: The correct option with proper explanation are as follows.
Q: Using the following data, apply the high-low method of cost analysis to the three cost data groups:…
A: In this question, we have to find out the pattern behavior of each group.
Q: High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and…
A: High-Low Method: The high-low method is that method by which the variable component and the fixed…
Q: If the total cost function is y = 6,300 + 2X, calculate the variable cost for 4,400 units. OA.…
A: The question is related to Total Cost Function whic is Y = a + bx Where a = Fixed Cost b =…
Q: The MTN Company has assembled the following data pertaining to certain costs which cannot be easily…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Given the mixed cost function y = $6.50x + $3,000. What does the $6.50 represent? O a. The fixed…
A: The $6.50 represent variable expense, x represent no. of units and $3,000 represent fixed costs. The…
Q: Oriole Company has a unit selling price of $630, variable costs per unit of $410, and fixed costs of…
A: Break Even Point: The breakeven point is the level of production at which the costs of production…
Q: Based on the following sensitivity report, what would be the impact of changing the objective…
A: Sensitivity analysis: 100% rule If numerous objective function coefficients are changed, the 100…
Q: Assume that the linear cost and revenue models apply. An item costs $12 to make. If fixed costs are…
A: According linear model: R(x) = mx +c Total revenue = Total cost + Profit Total revenue =…
Choose the correct letter of answer
On a scattergrap, the diagonal line cuts across two sets of observations, namely: 600:200, and 900:500 which refer to costs and units, respectively. The fixed costs is plotted in the graph at P400. In this case, the variable cost per unit is equal to:
a. P1.00
b. P1.25
c. P1.50
d. P1.12
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- a) Determine the variable cost per unit and the fixed cost using the high-low method.b) What is the equation of the total mixed cost function?c) Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scaleof 2 cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the yaxis.Given the mixed cost function y = $6.50x + $3,000. What does the $6.50 represent? a.Total cost per unit of the cost driver b.The fixed cost per unit c.The slope of the cost function d.Total fixed costsIf the high-low points method is used, the results when compared with those under the method of least squares, are (Variable Cost Per Unit, Total Fixed Costs). the given is a. Equal, Equal b. Higher by P1.26, Lower by P2,850 c. Lower by P1.26, Higher by P2,850 d. Higher by P5 , Lower by P1,500
- 1) Determine the variable cost per unit and the fixed cost using the high-low method. 2) What is the equation of the total mixed cost function? 3) Based on the High-Low method, what is the total production costs if 6,500 units are produced?4) Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scale of 2 cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the yaxis.5) Using the line of best-fit, determine the company’s fixed cost per month and the variable cost per unit. (Use 0 & 5,000 units.) Answer all please and thanks.What is the correct choice? Datamatix Company has gathered the following data: Unit Sales Price Unit Variable Costs Unit Sales Product 1 $18.00 $10.00 24,500 Product 2 27.00 17.00 17,500 Product 3 35.00 28.00 28,000 Fixed costs are $233,280. The weighted-average breakeven point is a. 34,500 units. b. 28,800 units. c. 25,200 units. d. 29,900 units.If Actual sales are OMR 490000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and Variable cost per unit OMR 35, which of the following shows Margin of Safety (MS) as amount and as percentage (on sales)? Select one: a. MS=40000 and MS (%)=8.16 b. MS=60000 and MS (%)=15.15 c. MS=72000 and MS (%)=16.42 d. MS=40000 and MS (%)=8.89
- What type of cost exhibits the behavior shown below? Manufacturing Volume (Units) Cost Per Unit 50,000 $1.95 70,000 1.95 Select one: a. Discretionary fixed cost b. Step-fixed cost. c. Semivariable cost.d. Variable cost. e. Fixed costThe left column lists several cost classifications. The right column presents short definitions of those costs. In the blank space beside each of the numbers in the right column, write the letter of the cost best described by the definition. A. Total cost B. Mixed cost C. Variable cost D. Curvilinear cost E. Step-wise cost F. Fixed cost 1. This cost is the combined amount of all the other costs. 2. This cost remains constant over a limited range of volume; when it reaches the end of its limited range, it changes by a lump sum and remains at that level until it exceeds another limited range. 3. This cost has a component that remains the same over all volume levels and another component that increases in direct proportion to increases in volume. 4. This cost increases when volume increases, but the increase is not constant for each unit produced. 5. This cost remains constant over all volume levels within the productive capacity for the planning period. 6. This cost increases in direct…The Perize Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows: Indirect Materials Cost Explained by Units Produced Constant $15,685 Standard error of Y estimate $3,500 r2 0.7832 Number of observations 20 X coefficient(s) 10.25 Standard error of coefficient(s) 2.1876 What is the cost function? Select one: a. Y = $19,185 + $4.48X b. Y = $15,685 + $10.25X c. Y = $12,285 + $10.25X d. Y = $3,500 + $5.15X
- Complete the table below for contribution margin per unit, total contribution margin, and contribution margin ratio: LOADING... (Click the icon to view the table.) Compute the missing information, starting with scenario A, then for scenarios B and C. (Enter the contribution margin ratio to nearest percent, X%.) A Number of units 2,833 units Sale price per unit $200 Variable costs per unit 80 Calculate: Contribution margin per unit Total contribution margin Contribution margin ratio % Data Table A B C Number of units 2,833 units 3,100 units 5,600 units Sale price per unit $200 $3,000 $125 Variable costs per unit 80 1,500 100 Calculate: Contribution margin per unit Total contribution margin Contribution margin ratioTashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 6,000 $324,800 2,000 208,800 3,600 240,120 a. Determine the variable cost per unit and the total fixed cost. Variable cost (Round to two decimal places.) $fill in the blank 1 per unit Total fixed cost $fill in the blank 2 b. Based on part (a), estimate the total cost for 2,880 units of production. Total cost for 2,880 units: $fill in the blank 3The graphs below represent cost behavior patterns that might occur in acompany's cost structure. The vertical axis represents total cost, and thehorizontal axis represents activity output. Required:For each of the following situations, choose the graph from the group a-1 that best illustrates the cost pattern involved. Also, for each situation,identify the driver that measures activity output. 1. The cost of power when a fixed fee of $500 per month is chargedplus an additional charge of $0.12 per kilowatt-hour used2. Commissions paid to sales representatives. Commissions arepaid at the rate of 5 percent of sales made up to total annual salesof $500,000, and 7 percent of sales above $500,000.3. A part purchased from an outside supplier costs $12 per part for the first 3,000 parts and $10 per part for all parts purchased inexcess of 3,000 units.4. The cost of surgical gloves, which are purchased in incrementsof 100 units (gloves come in boxes of 100 pairs).5. The cost of tuition at a…