How much is the expected total variable cost on budget

Assignment Help Financial Management

Reference no: EM13946783

Aaron's chairs is in the process of preparing a production cost budget for August. Actual costs in July for 120 chairs were: Materials cost $4,890 Labor cost 2,670 Rent 1,500 Depreciation 2,500 Other fixed costs 3,200 Materials and labor are the only variable costs. If production and sales are budgeted to increase to 130 chairs in August, how much is the expected total variable cost on the August budget?

Reference no: EM13946783

Questions Cloud

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?

Time sporting goods : Al Thomas has recently been approached by his brother-in-law, Robert Watson, with a proposal to buy a 20 percent interest in Watson Leisure Time Sporting Goods. The company manufactures golf clubs, baseball bats, basketball goals, and other similar i..

What is the implicit interest in first year of bonds life : Suppose you purchase a zero coupon bond with a face Value of $1,000, maturing in 20 years, for $213.80. Zero coupon bonds pay the investor the face value on the maturity date. What is the implicit interest in the first year of the bond’s life?

How much is the expected total variable cost on budget : Aaron's chairs is in the process of preparing a production cost budget for August. Actual costs in July for 120 chairs were: Materials cost $4,890 Labor cost 2,670 Rent 1,500 Depreciation 2,500 Other fixed costs 3,200 Materials and labor are the only..

Assume investors are risk-neutral-bonds are noncallable : KIC, Inc., plans to issue $5 million of bonds with a coupon rate of 8 percent and 30 years to maturity. The current market interest rates on these bonds are 7 percent. In one year, the interest rate on the bonds will be either 10 percent or 6 percent..

Furthering plans for expansion of manufacturing facilites : Felicia & Fred’s Firm have now considered furthering their plans for expansion of manufacturing facilities. Their first option is by customizing and refurbishing the large former mill building located in New England near the main production facility...

Develop an imc plan to promote a new version of products : You are the Australian-based Marketing Manager of a large international consumer products company. You are to develop an IMC plan to promote a new version of one of the company's products.

What is the project variance and standard deviation : What is the expected total activity time in weeks for each of the five separate paths through the network? What is the critical path for the network and associated overall project completion time in weeks?

User Account

All Pages