Ch 5 Hmwk Sol

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

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 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. 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 Exercise 5-11 1. The scattergraph appears below. 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 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Number of X-Rays Taken Cost of X-Rays Problem 5-15 1....
View Full Document

Page1 / 8

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

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online