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Question - Rommel Trucking uses cargo miles driven (CMD) as an activity base. The company reports the following breakdown of cost behaviors: Purely fixed costs = $900,000/year Purely variable costs = $2.50/CMD Semivariable (mixed) costs = $100,000/year + $0.50/CMD. Compute the company's estimated total cost per CMD if the following miles are logged by drivers during the year:
1. The estimated total cost per CMD at 400,000 miles logged is $ ______.
2. The estimated total cost per CMD at 800,000 miles logged is $ _____.
3. The estimated total cost per CMD at 1 million miles logged is $ _____.
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Charles is 65 years of age and in receipt of a CPP retirement pension. He filed a CPT30 election. What should be his maximum CPP contribution
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The accountant believes that Rice Electronics will eliminate $75,000 of fixed overhead if it accepts the proposal. Does this new information change the decision
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