Find the estimated total costs for production level

Assignment Help Financial Management

Reference no: EM131078148

Total costs were 74,300 when 29,000 units were produced and $93,500 when 37,000 units were produced. Use the high low method to find the estimated total costs for a production level of 32000 units

Reference no: EM131078148

Questions Cloud

Tax burden and interest burden : A company has a profit margin of 25%, an asset turnover ratio of 1.5, and an equity multiplier ratio of 1.65, both the tax burden and the interest burden are at 1, if the profit margin increases to 20% but the asset turnover ratio decreases to 1.3, w..

What will be equity value of firm today using DCF model : Company A’s current free cash flow is $2 dollars and forecasts its FCFF to grow at 0% for 2 years, then 10% for 2 years, then at 5% forever. The firm is consisted of 100% equity and has no debt. If the company’s beta is 1.5, the risk free rate is 2% ..

What kind of features or options hedges would be called : What kind of features or options hedges would be called for the following situations? market interest rates are expected to increase her financial firms asset liability managers expect to liquidate a portion of their bond portfolio to meet customers ..

Suppose the current risk-free rate of return : Suppose the current risk-free rate of return is 3.3 percent and the expected market risk premium is 8.5 percent. Using this information, estimate the cost of retained earnings for a company with a beta coefficient equal to 0.8?

Find the estimated total costs for production level : Total costs were 74,300 when 29,000 units were produced and $93,500 when 37,000 units were produced. Use the high low method to find the estimated total costs for a production level of 32000 units

Determine the cost using target costing methodology : A new product is being designed by an engineering team at Golem Security. Several managers and employees from the cost accounting department and the marketing department are also on the team to evaluate the product and determine the cost using a targ..

Units are expected to be sold : A company has $6.10 per unit in variable costs and $3.80 per unit in fixed costs at a volume of 50,000 units. If the company marks up total cost by 0.47, what price should be charged if 67,000 units are expected to be sold?

Uses cost-plus pricing : The Estrada Company uses cost-plus pricing with a 0.48 mark-up. The company is currently selling 100,000 units. Each unit has a variable cost of $4.80. In addition, the company incurs $180,900 in fixed costs annually. If demand falls to 85,800 units ..

What is pre-tax cost of debt-effective annual return : Avicorp has $14.2 million debt issue outstanding, with a 6.1% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 93% of par value. What is Avicorp’s pre-t..

User Account

All Pages