Find the estimated total costs for a production level

Assignment Help Financial Management
Reference no: EM13946790

Total cost were $71,700 when 28,000 units were produced and $93,100 when 35,000 units were produced. Use the high-low method to find the estimated total costs for a production level of 32,000 units.

Reference no: EM13946790

Questions Cloud

Is equity financing superior to debt financing : Is equity financing superior to debt financing? Does it better serve the objectives of Shariah? Discuss the ways by which the Islamic finance industry can reduce its current reliance on the debt market and increase its proportion of the equity market..
What are inherent issues pertaining to dividend purification : Despite the innovative developments in Shariah screening of mixed businesses, some scholars have argued in favour of "purification" as a complementary measure that should go with stock-screening. What are the inherent issues pertaining to dividend pu..
Fundamental analysis or technical analysis : When valuing stocks (and in particular, deciding what stocks to buy and at what price), two basic methodologies can be employed- fundamental analysis and technical analysis. In relation to investments in equity, argue from a Shari'ah perspective, whi..
Value of six-month european call option with strike price : A futures price is currently 100. At the end of six months it will be either 112 or 90. The risk-free interest rate is 5% per annum. What is the value of a six-month European call option with a strike price of 100?
Find the estimated total costs for a production level : Total cost were $71,700 when 28,000 units were produced and $93,100 when 35,000 units were produced. Use the high-low method to find the estimated total costs for a production level of 32,000 units.
Activity-based costing system with three activity cost pools : Aberdeen Corp. uses activity-based costing system with three activity cost pools. The following information is provided: Costs: Wages and salaries $ 211,000 Depreciation 115,000 Utilities 120,000 Total $440,000 Activity Cost Pools Assembly Setting Up..
What is the actual annual interest rate you will pay : You take out a 3-year, $6,000 loan at 7% interest with monthly payments. The lender charges you a $100 fee that can be paid off, interest free, in equal monthly installments over the life of the loan. Thinking of the fee as additional interest, what ..
Rate of return on high value mutual fund-market portfolio : Suppose that securities are priced according to the CAPM. You have forecast the correlation coefficient between the rate of return on the High Value Mutual Fund (HVMF) and the market portfolio (M) at 0.8. Your forecasts of the standard deviations of ..
Exchange rate-what is the cross rate : The financial press reports the USD/NGN exchange rate at 194.0521 and the USD/NZD exchange rate at 1.5043. What is the cross rate between the New Zealand dollar and the Nigerian naira?

Reviews

Write a Review

Financial Management Questions & Answers

  Journal of economic perspective

Write a summary of the attached Article by Mishkin, Frederic S - Over the Cliff: From the Subprime to the Global Financial Crisis';

  Implementation of a pro-active ethics program is expected

The implementation of a pro-active ethics program is expected to result in

  Compute the net present value of the project

Compute the net present value of this project assuming it possesses average risk. Because of the risk inherent in this type of investment, Seminole has decided to employ the certainty equivalent approach.

  What is the effect of changing debt ratio on cost of capital

The Miller-Modigliani model proposes that debt is irrelevant. Under what conditions is this true? If debt is irrelevant, what is the effect of changing the debt ratio on the cost of capital?

  Debenture at the required rates of return

Determine the value of a $1,000 Canadian Pacific Limited perpetual 4 percent debenture (bond) at the following required rates of return:

  Expected to pay the dividends

Lohn Corporation is expected to pay the following dividends over the next four years: $15, $12, $11, and $3.50. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 1..

  Conventional departmental organization by function

Production starts in the drilling department, where each fitting requires an average of one minute on a CNC machine. Because of the length of time required to set up a CNC machine to produce a certain model, the fittings are produced in batches of 2,..

  What will dividend yield and capital gains yield be in year

Suppose a company has net income of $1,000,000 and a plowback ratio of 40%. there are 50,000 shares of stock outstanding. the company plans to increase dividends by 22% each year for the next 2 years and then apply a 2.25% growth rate to dividends ea..

  CAPM and required return

Bradford Manufacturing Company has a beta of 1, while Farley Industries has a beta of 0.85. The required return on an index fund that holds the entire stock market is 9.5%. The risk-free rate of interest is 4.5%. By how much does Bradford's required ..

  Assume that project being considered has normal cash flows

Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.

  Considering issuing new shares of common stock

Cayman’s Crafters is also considering issuing new shares of common stock. Their investment banker has advised them that it is a good time to sell and that the market’s required rate of return on similar securities is currently 8.5%. You will be recei..

  What percentage of the market value of the shares

XYZ Corporation has received a firm commitment from its underwriter to purchase 1 million shares of stock that will be marketed to the general public at $23 per share.  What percentage of the market value of the shares is represented by these costs?

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