FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Cardinal uses the high-low method of estimating costs. Cardinal had total costs of $26,450 at its lowest level of activity, when 7,100 units were sold. When, at its highest level of activity, sales equaled 12,700 units, total costs were $39,890. What would be the estimated variable cost per unit be?
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- 3. A hardware company has a linear total cost function and has determined that it has a total cost of $13,980 on sales of $6,000. The same company has a total cost of $18,620 on sales of $14,000. The selling price per unit is $1. (a) Determine the revenue, cost, and profit function using q for quantity. (b) What is the fixed cost? (c) What is the variable cost on sales of $60,000? (d) What is the total cost on sales of $60,000? (e) Find the break-even point and break-even dollar volume of sales.arrow_forwardLamp Company has the following cost-volume-profit (CVP) data: Breakeven point, in units 3,000 Selling price per unit $ 600 Total fixed costs $ 124,000 What is the variable cost per unit (rounded to two decimal places)?arrow_forwardAlfaro company provided the following data for its three products' selling price, variable cost, and contribution margin per unit: Product A - P20, P14, P6; Product B- P16, P7, P9; Product C- P22, P16, P6. Total fixed cost is P1,000,000. The sales mix is 4:4:7. In the break-even units, what is the number of units of product B that must be produced and sold? * 39,216 O 63,025 O 42,017 O 68,627arrow_forward
- Suppose that a company has fixed costs of $22 per unit and variable costs $9 per unit when 18,000 units are produced. What are the fixed costs per unit when 14,400 units are produced? Round your answer to the nearest cent. Fixed costs per unit _____arrow_forwardA company's product sells at $12.26 per unit and has a $5.39 per unit variable cost. The company's total fixed costs are $96,700. The contribution margin per unit is:arrow_forwardsolve this onearrow_forward
- Using the high low method, Hadley Company calculated the variable cost as $2.5 per unit. The high level of the activity was 2320 units and $38325 of total cost. Total fixed costs equal $ your answer as a whole number. 32.525 Moving to another question will save this response. Ent << Question 4 ofarrow_forwardBell Corporation reports that at an activity level of 8,700 units, its total variable cost is $653,109, and its total fixed cost is $658,416. Use 8,800 units and Calculate the following: the total variable cost, the total fixed cost, the total cost, the average variable cost per unit, the average fixed cost per unit, and the average total cost per unit.arrow_forward
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