Estimate the total fixed cost per month

Assignment Help Finance Basics
Reference no: EM13273034

Denburg Company provides information about its activity for the first four months of 2014. The management of the company wants to determine the nature of the costs.

Month                 Miles                Total Cost

January                 80,000                 $144,000

February               50,000                   120,000

March                  70,000                   141,000

April                    90,000                   195,000

a) Estimate the variable cost per mile.

b) Estimate the total fixed cost per month.

c) Express a formula to estimate the total costs at other activity levels, defining your terms, and identify any facts assumed by your assumption.

d) What method did you use to make your estimates in "a" and "b" above? Are there any other possible methods that can be used? If so, state the advantages of each.

 

Reference no: EM13273034

Questions Cloud

Fieldsman would intuitively solve to catch the ball : A cricket ball is thrown high up in the air and a fielder is attempting to catch the ball as it drops. Analyze the control problem that the fieldsman would intuitively solve to catch the ball.
How much did the company spend on new fixed assets : For the year just ended, Ypsilanti Yak Yogurt shows an increase in its net fixed assets account of $605. The company took $190 in depreciation expense for the year. How much did the company spend on new fixed assets?
Explain high kinetic energy and low probability : Sketch a well behaved wave function in 1-d with the labels I. High probability and high kinetic energy, ii low probability and low kinetic energy, ii high kinetic energy and low probability. Which of these (I-iii) will potential energy be highest
What is the highest rate you can afford : Assume monthly compounding, what is the highest rate you can afford on a 60-month APR loan?
Estimate the total fixed cost per month : What method did you use to make your estimates in "a" and "b" above? Are there any other possible methods that can be used? If so, state the advantages of each.
Culture and the impacts european intervention : Discuss their culture and the impacts European intervention had on their culture on the natives (Amerindians- Arawaks and Caribs).
Find the magnitude of the average force exerted on the ball : A 0.11-kg rubber ball is dropped onto a table. The speed of the ball right before it hits the table is 5.9 m/s. what is the magnitude of the average force exerted on the ball by the table
How effective discharge planning forms are : How effective discharge planning forms are when clinicians and nurses are preparing a patient for discharge - brief description of the research and some key headings for your literature review.
Explain a silicon wafer is etched in a cl2 plasma : A silicon wafer is etched in a Cl2 plasma. A mass flow controller (used to meter the gas flow fed to the reactor) shows a reading of 100 sccm (sccm=standard cm3 per min; standard conditions are 273 K and 1 atm). The etching reactor operates at 100..

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the total and maximum amount

Kelly has AGI of $100,000 in 2006. She contributes stock in Tulip Corporation to a State University The stock price is $59000 & she acquired it as an investment two years ago at a cost of $44,000.

  Evaluating the stock issue

Recent financial information on Sunbeam Corporation Sunbeam has not performed great to date. However, it wishes to issue new shares to obtain $100,000 to finance expansion into a new market.

  Maximize the wealth of existing stockholders

Since managers are agents of stockholders, it is their professional obligation to make decisions to maximize the wealth of existing stockholders.

  What is the expected return on the portfolio

You own a portfolio that is 40 percent invested in Stock X, 25 percent in Stock Y, and 35 percent in Stock Z. The expected returns on these three stocks are 11 percent, 20 percent, and 16 percent, respectively. What is the expected return on the p..

  How much must the member pay

An HMO has a point of service (POS) option for its members but will pay only 80 percent of approved charges. If a member goes out of network for a medical procedure with a charge of $2,000 of which $1,2000 is approved how much must the member pay.

  Defined benefit pension plan

Kenny's Aquatics, Inc. sponsors both a profit sharing plan and a defined benefit pension plan.  If Kenny's Aquatics would also like to contribute the maximum to the profit sharing plan, how much can they contribute?

  Computation of present value of cash flow stream

Computation of present value of cash flow stream and what is the present value of the following cash flow stream

  What is the possible range for a correlation coefficient

For purposes of diversification, what type of correlation coefficient among assets returns is preferred by investors? Provide a brief explanation.

  What is the variable cost per unit

Month Units produced Total costs March 10,000 $25,600 April 12,000 26,200 May 19,800 27,600 June 13,000 26,450 July 12,000 26,000 August 15,000 26,500 Using the high-low method, what is the variable cost per unit?

  What price must german motors charge for the same model

What price must German Motors charge for the same model on January 29, 2013 to realize the same amount of euro ( ) as it did in 2008. ($0.9150/Euro on 1/20/08 and $0.9950/Euros on 1/29/2013)

  What is the standard deviation of the complete portfolio

Consider the following capital market: a risk-free asset yielding 1.75% per year and a mutual fund consisting of 65% stocks and 35% bonds. The expected return on stocks is 12.50% per year and the expected return on bonds is 3.25% per year. The standa..

  Calculate the stocks expected return and standard deviation

Calculate the stock's expected return and standard deviation

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