Use the following information for the Exercises below. (Algo)[The following information applies to the questions displayed below.]Felix & Company reports the following information.Period1Units Produced Total Costs$ 2,5153,2353,9554,6755,3956,1156,8357,5558,2758,99540038001,2001,6002,0002,4002,8003,2003,6006.710Exercise 18-5 (Algo) Measuring costs using high-low method LO P1(1) Use the high-low method to estimate the fixed and variable components of total costs.(2) Estimate total costs if 3,000 units are produced.Answer is not complete.High-Low method - Calculation of variable cost per unitVolume at low point minus volume at high pointVariable cost perunit =$2,515 X$1.00Volume at high point minus volume at low point2,515High-Low method - Calculation of fixed costsTotal cost at the high point$8,995Variable costs at the high pointVolume at the high point2 X unitsVariable cost per unit$1.00Total variable costs at the highpointTotal fixed costsTotal cost at the low point$2,515Variable costs at the low pointVolume at the low point2 XVariable cost per unitTotal variable costs at the lowpointTotal fixed costs(2) Estimated cost if 3,000 units are produced:Estimated total cost$7,915%24

Name: Use the following information for the Exercises below. (Algo)[The fol
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Description: Use the following information for the Exercises below. (Algo)[The following information applies to the questions displayed below.]Felix & Company reports the following information.Period1Units Produced Total Costs$ 2,5153,2353,9554,6755,3956,1156,83

1. As per high low method, variable cost= (cost at higher activity- cost at lower activity)/(highest…

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[The following information applies to the questions displayed below.] Felix & Company reports the following information. Period Units Produced Total Costs $ 2,515 3,235 3,955 4,675 5,395 6,115 6,835 7,555 8,275 8,995 2 400 800 1,200 1,600 2,000 2,400 2,800 3,200 3,600 4 7 8 9 10 Exercise 18-5 (Algo) Measuring costs using high-low method LO P1 (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 3,000 units are produced.

[The following information applies to the questions displayed below.] Felix & Company reports the following information. Period Units Produced Total Costs $ 2,515 3,235 3,955 4,675 5,395 6,115 6,835 7,555 8,275 8,995 2 400 800 1,200 1,600 2,000 2,400 2,800 3,200 3,600 4 7 8 9 10 Exercise 18-5 (Algo) Measuring costs using high-low method LO P1 (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 3,000 units are produced.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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[The following information applies to the questions displayed below.] Pepper’s Automotive produces auto parts for various automotive retailers. Pepper’s is evaluating the exhaust system division of the company and has come up with the following data for the year: net revenues are $1,270,000, variable costs are $426,000, and fixed costs are $517,000. Of the fixed costs, controllable fixed costs are $118,000 and noncontrollable fixed costs are $399,000. Pepper’s Automotive has further analyzed the exhaust system division into three products: exhaust pipes, intake valves, and intake pipes. The income statement is available below. If intake valves were dropped, what would be the change in profits in the short run and the long run, respectively? Exhaust Pipes Intake Valves Intake Pipes Net revenues $ 590,000 $ 390,000 $ 290,000 Variable costs 59,000 195,000 172,000 Contribution margin 531,000 195,000 118,000…
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