Estimate both the variable costs per sales dollar

Assignment Help Financial Accounting
Reference no: EM131266848

Alden Co.'s monthly sales and cost data for its operation activities of the past year follow. managment wants to use these data to predict future fixed and variable cost.

month sales            total cost     month     sales            total cost

1.          $320.000     $160.000        7.            $340.000     $220.000

2.            160.000       100.000        8.              280.000       160.000

3.             280.000       220.000       9.              80.000         64.000

4.            200.000         100.000      10.          160.000        140.000

5.            300.000         230.000       11.         100.000        100.000

6.            200.000        120.000        12.         110.000         80.000

Required:

1. Estimate both the variable costs per sales dollar and the total monthly fixed costs using the high low method.

2. Use the estimated line of cost behavioral and results from part 1to predict future cost total cost when sales volume is a} $200.000 and b} $300.000.

Reference no: EM131266848

Questions Cloud

Changes in demand and supply of particular goods : Go to the internet and find a news article that discusses changes in demand and supply of particular goods, summarize key points and post in the Discussions area.
Aggregate effect of all decision makers : Briefly stated, microeconomics is about individual decision makers, whereas macroeconomics is about the aggregate effect of all decision makers. However, this simple distinction does not adequately describe how macroeconomics differs from microeco..
What type of adopter behavior do you typically follow : Explain the diffusion process through which new products are adopted.- What type of adopter behavior do you typically follow? Explain.
Compare and contrast two perspectives on sexuality : For this essay, compare and contrast two perspectives on sexuality (essentialist, social constructionist, historic, psychological, and/or biological). Explain the advantages and disadvantages of each of your two perspectives and give an example o..
Estimate both the variable costs per sales dollar : Alden Co.'s monthly sales and cost data for its operation activities of the past year follow. managment wants to use these data to predict future fixed and variable cost. Estimate both the variable costs per sales dollar and the total monthly fixed c..
Compile a list of 100 new products : Compile a list of 100 new products. If you are building a portfolio of ads, you can generate part of this list as you collect print advertisements for the topics in this chapter.
Parts-and-labor warranty on all merchandise it sells : The Wolf Appliance Co. provides a 120-day parts-and-labor warranty on all merchandise it sells.  Show the effects of these transactions on the financial statements using a horizontal statements model like the example shown here. Use a + to indicate i..
Prepare the journal entries to record all interest expense : On July 1, 2008, Justin Corporation issued $20 million of 8%, twenty-year bonds. Interest on the bonds is paid semiannually on December 31 and June 30 of each year, and the bonds were issued when the market interest rate was 9%. Compute the issue pri..
Concept of consumer and producer surplus : Explain the following concepts using the concept of consumer and producer surplus:

Reviews

Write a Review

Financial Accounting Questions & Answers

  Determine the current average cost per meal

Nature’s Garden, a new restaurant situated on a busy highway in Pomona, California, specializes in a chef’s salad selling for $7. Daily fixed cost are $1,200 and variable costs are $4 per meal. Determine the current average cost per meal

  Illustrate what was barbell net cash flow

The statement also shows that the company has depreciation and amortization expenses equal to $50,000 and taxes equal to $120,000. Illustrate what was Barbell’s net cash flow?

  Create a cvp chart based on the cost-volume profit analysis

Create a CVP chart based on the Cost-Volume Profit Analysis completed in the prior step. Place this chart on a separate worksheet named CVP Chart.

  What is the bonds nominal annual yield to call

Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 8.4% with semi annual payments of $42, and a par value of $1,000. The price of each bond in the issue is $1,240.00. The bond issue is callable in 5 years ..

  Unable to resell the compressing unit for any price

ABS Fabricating Co. (ABS) and Xeno Corp. (Xeno) agreed orally that ABS would custom manufacture a compressing unit for Xeno at a price of $120,000. After ABS completed the work at its own cost of $90,000, Xeno notified ABS that the compressing unit w..

  Calculate depreciation using gaap rules

What is the depreciation rate under the units of production method - Companies whose financial statements are to be audited or reviewed by a CPA and calculate depreciation using GAAP rules, you must determine an asset's.

  What is the firms magnitude of operating leverage

Wham Company sells electronic squirrel repellents for $41. Variable costs are 42% of sales and total fixed costs are $31,000. What is the firm's magnitude of operating leverage if 1,900 units are sold?

  Average cost method is used what would be conversion cost

Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $13,087. Of the $13,087, $8,220 was for material and $4,867 was for conversion costs. If the average cost method is used what would be..

  Question1 using excel prepare a flowchart documenting the

question1. using excel prepare a flowchart documenting the salescollection process for elm corporation using the facts

  What are the tax consequences of choosing the lower down pay

What are the tax consequences of choosing the lower down payment and larger note option, assuming he has no other installment receivables.

  What is the allowance for doubtful accounts balance

What is the Allowance for Doubtful Accounts balance after this write off? Write the journal entry to record amortization of the intangible asset as of 12/31/12. At what amount is the copyright reported on the December 31, 2012 Balance Sheet?

  Prepaid insurance-accounts payable and property tax expense

The following trial balance of Waterway Landowska Company does not balance. Your review of the ledger reveals the following. (a) Each account had a normal balance. (b) The debit footings in Prepaid Insurance, Accounts Payable, and Property Tax Expens..

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