Determine variable cost per unit and total fixed cost

Assignment Help Financial Management
Reference no: EM131872513

High-Low Method The manufacturing costs of Alex Industries for three months of the year are provided below. Total Costs Production January $181,440 1,260 units February 259,660 2,260 units March 282,240 3,360 units Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar.

a. Variable cost per unit $

b. Total fixed cost $

Reference no: EM131872513

Questions Cloud

How many different types of trna molecules exist in the cell : How many different types of tRNA molecules exist in the cell? For what purpose (hint: why are there 20 different tRNA molecules)?
Analyze each reason listed above as a reason for a diversity : Analyze each reason listed above as a reason for a diversity of approaches to software construction and modeling, and give your opinion.
Evaluate how consultants can be good or bad for labor : Evaluate how consultants can be good or bad for labor relations. Analyze the types of tactics are described on their sites.
What was the addition to net working capital : If net fixed assets increased by $7,000 during the year, what was the addition to net working capital?
Determine variable cost per unit and total fixed cost : determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar.
Account food chains when repopulating native species : If you were going to reclaim an area in a city near you, what plant species would you use for ground cover, and what animal species would be able to live?
What did the authors accomplish with this research effort : Explain/describe the artifact that is the subject of this article. If there isn't an artifact, briefly explain why you think that is.
What are the cost and profitability implications : What are the cost and profitability implications to a company with substantial production investment when the results of development are used
Compare and contrast the first mover : What are the advantages and disadvantages of each type of mover?

Reviews

Write a Review

Financial Management Questions & Answers

  Present value of bankruptcy and financial distress costs

When securities are fairly priced, why would the original shareholders of a firm pay the present value of bankruptcy and financial distress costs?

  Forecasts the year-end free cash flows

Hadley Inc. forecasts the year-end free cash flows (in millions) shown below. FCF yr1 -$22.32 yr2 $37.9 yr3 $43.8 yr4 $52.4 yr5 $55.2 The weighted average cost of capital is 9%, and the FCFs are expected to continue growing at a 5% rate after Year 5...

  What is the optimal cash return point

What will be its optimal upper cash limit? What is the optimal cash return point?

  Share of steps in the product supply chain being outsourced

What similar outsourcing developments have we seen with the financial supply chain? What might the risk issues be here?

  Issuing some new preferred shares

Lexar Corporation is issuing some new preferred shares. The preferred stock will pay a perpetual dividend of $12.00 per year beginning 9 years from now.

  Inquire about the operating profits

Carol comes to you to inquire about the operating profits (EBIT) per month.

  Banks and other depository institutions make loans

Banks and other depository institutions make loans, invest in government securities, buy and sell federal funds, and accept deposits with a wide spectrum of maturities and with many payable on demand. Within this context, discuss the effect of differ..

  The yield to maturity on comparable-risk bond

How does the value change if the yield to maturity on a? comparable-risk bond? (i) increases to 14 percent or? (ii) decreases to 6 ?percent?

  Projections indicate revenues-cost of goods sold

In its first year, Joe’s Start-Up Company’s first year projections indicate revenues of $125,000 and Cost of Goods Sold (CGS) of $81,250, which will be the ONLY variable cost. Depreciation will be $20,000, and cash interest on seed stage loans will b..

  What does interest rate parity predict

What does Interest Rate Parity predict that the 1-year forward USD-ZAR rate will be?

  Alternative current operating assets financing policies

Explain the three alternative current operating assets financing policies in details. In your opinion, what is the best strategy for management with regard to financing current operating assets? Does the answer vary by industry? Does the answer vary ..

  Additional net working capital investments each year

Net working capital is 1,500,000; additional net working capital investments each year (starting in year 1) equal to 15% of the projected sales increase for the following year. Decreases in sales will result in recovery of net working capital equal t..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd