5_takehome_chapter 3_fall 2010

5_takehome_chapter 3_fall 2010 - ______________ Low:...

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Acc 200P Name: ______________________ Lab Section #: ________________ Lab Instructor’s Name: _________ Date: _______________________ TAKE-HOME QUIZ Chapter 3 Reminder - for all problems requiring calculations, you must show your work in the space provided. PROBLEM I: (15 pts) Richardson Corporation plans to increase its advertising budget by 20% next year. The company currently spends $15,000 on advertising costs. In addition to advertising, Richardson spends $50,000 per year for other fixed costs and $10 per unit for variable costs. Required : If Richardson anticipates producing 30,000 units next year, what will be next year’s estimated total costs? Answer: $__________ PROBLEM II : (70 pts) Reliable Movers Inc. documented the miles driven and total moving van costs for the past five months as follows: Number of Miles Total Vehicle Costs January 3,000 $ 4,800 February 3,500 5,200 March 5,000 6,100 April 4,000 5,000 May 6,000 6,000 A. Which two months exhibit the high and low activity levels? High:
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Unformatted text preview: ______________ Low: ______________ B. Using the high/low method, what is the variable cost per mile? Answer: $______ per mile C. Using the high/low method, what are total fixed costs? Answer: $____________ D. Using your answers to B and C, write the equation to predict moving van costs: E. If the company expects to drive 9,000 miles in June, what will be the estimated total vehicle costs? Answer: $____________ PROBLEM III : (15 pts) A manager is considering a special project that will increase cash sales by $80,000 and increase costs by $30,000. All cash receipts are taxable and all costs are tax deductible. If the tax rate is 30%, what will be the after-tax profit ( sales revenue minus costs ) from the special project? Answer: $___________ HONOR PLEDGE : I have worked independently on this quiz. I have neither given nor received any assistance to or from others. _________________________________ student signature 2...
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5_takehome_chapter 3_fall 2010 - ______________ Low:...

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