# Total fixed costs for randolph manufacturing are

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- Total fixed costs for Randolph Manufacturing are \$754,000. Total costs,including both fixed and variable, are \$1,000,000 if 150,000 units are produced.The variable cost per unit isCost equation y = vx + f\$1,000,000 = 150,000x + 754,000246,000 = 150,000x\$1.64 = x- Total fixed costs for Green Planes Inc. are \$120,000. Total costs, including bothfixed and variable, are \$600,000 if 150,000 units are produced. The total variablecosts at a level of 220,000 units would beCost Equation y = vx + f\$600,000 = 150,000x + \$120,000X = 3.20Then \$3.20 × 220,000 = \$ 704,000- Total fixed costs for Toys and Trinkets Incorporated are \$88,000. Total costs,including both fixed and variable, are \$155,000 if 268,000 units are produced.The total variable costs at a level of 275,000 units would beCost Equationy = vx + f\$155,000 = 268,000x + \$88,000X = 0.25Then \$0.25 × 275,000 = \$ 68,750- If 120,000 units are produced, total costs are \$343,000. Total fixed costs forBlue Peace Inc. are \$175,000. The variable cost per unitisCost Equation y = vx + f\$343,000 = 120,000x + \$175,000X = 1.40- Total costs for Locke & Company at 120,000 units are \$289,000, while totalfixed costs are \$145,000. The total variable costs at a level of 250,000 units
- If production increases by 30%, how will total variable costs likely react?- What term represents the variable cost per unit of activity in the equation: y = vx(Assume v represents the variable cost per unit of activity.) Answer: }”x”- The following data pertain to costs at Summit Company:Total fixed costs\$300,000Total variable costs\$ 75,000Production level20,000 unitsThe variable cost per unit isvx = \$ 75,000 divided by 20,000 = \$ 3.75- Tasty Treats is a snow cone stand near the local park. To plan for the future,Tasty Treats wants to determine its cost behavior patterns. It has the followinginformation available about its operating costs and the number of snow conesserved.MonthNumber of snow conesTotal operating costsJanuary6,400\$5,980February7,000\$6,400March6,200\$5,840April6,900\$6,330May7,600\$6,820June7,250\$6,575The variable cost per snow cone using the high-low method is*Highest cost\$ 6,820Highest activity7,600Lowest cost\$ 5,840Lowest activity6,200Difference\$ 9801,400
- Pablo was reviewing the water bill for his carwash business and determinedthat the highest bill, \$5,000, occurred in July when 2,200 cars were washed andthe lowest bill, \$3,200, occurred in February when 1,400 cars were washed.What was the variable cost per carwash?
NOW divide the difference in the cost by the difference in the activity equals

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Term
Fall
Professor
WHEATLEY
Tags
ACG3301, AsmaSawani, CHAPTER 5 And 6, ASSMA
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