Chapter 2A, Problem 2A.12C

1.

To determine

Introduction: : The high-low method is used to find fixed and variable cost in a limited amount of provided data. It can determine the variable and fixed cost if fixed cost is constant and variable is same on every unit, by system of equation.

To prepare: Scattered graph for labor and overhead.

2.

To determine

Introduction: Least square method are those methods which separate the mixed cost into two classes such as variable and fixed cost with use of regression line that reduce sum of squared errors.

To express: The fixed and variable component in the form of $Y=a+bX$ .

3.

To determine

Introduction: : The high-low method is used to find fixed and variable cost in a limited amount of provided data. It can determine the variable and fixed cost if fixed cost is constant and variable is same on every unit, by system of equation.

To calculate: The contribution margin earns by service the event.

4.

To determine

Introduction: : The high-low method is used to find fixed and variable cost in a limited amount of provided data. It can determine the variable and fixed cost if fixed cost is constant and variable is same on every unit, by system of equation.

The strength of bidding for charity event in terms of price per guest and still break even on the list.

5.

To determine

Introduction: The high-low method is used to find fixed and variable cost in a limited amount of provided data. It can determine the variable and fixed cost if fixed cost is constant and variable is same on every unit, by system of equation.

To calculate: Total operating cost of the truck if it were driven 80,000 kilometer.