5_takehome_chapter 3_fall 2010

# 5_takehome_chapter 3_fall 2010 - Low B Using the high/low...

This preview shows pages 1–2. Sign up to view the full content.

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:

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

{[ snackBarMessage ]}

### Page1 / 2

5_takehome_chapter 3_fall 2010 - Low B Using the high/low...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online