{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Ch 5 Hmwk Sol - ACC 202 Ch 5 Homework Solutions Exercise...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
ACC 202  Ch 5 Homework Solutions Exercise 5-1   1. Cups of Coffee Served  in a Week 1,800 1,900 2,000 Fixed cost $1,100 $1,100 $1,100 Variable cost         468             494             520     Total cost $1,568 $1,594 $1,620 Cost per cup of coffee served * $0.871 $0.839 $0.810 * Total cost  ÷  cups of coffee served in a week 2. The average cost of a cup of coffee declines as the number of  cups of coffee served increases because the fixed cost is spread  over more cups of coffee.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Exercise 5-10  1. X-rays Taken X-ray Costs High activity level (February) ......... 7,000 $29,000 Low activity level (June) ................. 3,000   17,000     Change .......................................... 4,000 $12,000 Variable cost per X-ray: Change in cost $12,000 = = $3.00 per X-ray Change in activity 4,000 X-rays Fixed cost per month: X-ray cost at the high activity level ........................... $29,000 Less variable cost element: 7,000 X-rays  ×  $3.00 per X-ray ..............................   21,000     Total fixed cost ......................................................... $      8,000     The cost formula is $8,000 per month plus $3.00 per X-ray taken  or, in terms of the equation for a straight line: Y = $8,000 + $3.00X where X is the number of X-rays taken. 2. Expected X-ray costs when 4,600 X-rays are taken: Variable cost: 4,600 X-rays  ×  $3.00 per X-ray ............. $13,800 Fixed cost ....................................................................       8,000     Total cost ..................................................................... $21,800
Background image of page 2
Exercise 5-11 1. The scattergraph appears below.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000 28,000 30,000 32,000 0 1,000 2,000
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}