Question

Pharoah Flower Cart incurred the following monthly costs. Bouquets Sold 5,000 7,500 10,000 Balloons (20 per bouquet) $13,117 $16,116 $19,116 $ 5,000 $ 6,104 $ 5,000 $ 8,240 $ 5,000 Insurance Delivery $10,390 Employee compensation $11,881 $13,798 $15,723 $ 1,500 $ 1,500 $ 1,500 Advertising Using the form y component enter 0 for the amount.) = mx + b, estimate the cost formula for each cost incurred by Pharoah Flower Cart. (Round unit cost to 2 decimal places, e.g. 52.75. If the cost equation has no variable Balloons х+ $ y = $ х+ $ Insurance y = $ Delivery y = $ Employee compensation y = Advertising х+ $ y = $ Open Show Work Click if you would like to Show Work for this question: %24

Answer 1

Answers

• Y = $x + $
  = $ Variable cost per bouquest x No. of bouquet + $ Fixed Cost
• Balloons: Y = $ 0.06 X + $ 7118

		Units	Cost
High Level		200,000	$                   19,116.00
Low Level		100,000	$                   13,117.00
Difference		100,000	$                     5,999.00
A	Difference in Cost		$                     5,999.00
B	Difference in units		100,000
C = A/B	Variable cost per unit		$                           0.060
Working		High Level	Low Level
A	Total Cost	$                 19,116.00	$                   13,117.00
B	Total Units	200000	100000
C	Variable cost per unit	$                           0.06	$                             0.06
D = B x C	Total Variable cost	$                 11,998.00	$                     5,999.00
E = A - D	Total Fixed Cost	$                   7,118.00	$                     7,118.00

• Insurance: Y = $ 0 X + $ 5000
• Delivery: Y = $ 0.86 X + $ 1818

	Months	Units	Cost
High Level		10,000	$                   10,390.00
Low Level		5,000	$                     6,104.00
Difference		5,000	$                     4,286.00
A	Difference in Cost		$                     4,286.00
B	Difference in units		5,000
C = A/B	Variable cost per unit		$                           0.857
Working		High Level	Low Level
A	Total Cost	$                 10,390.00	$                     6,104.00
B	Total Units	10000	5000
C	Variable cost per unit	$                           0.86	$                             0.86
D = B x C	Total Variable cost	$                   8,572.00	$                     4,286.00
E = A - D	Total Fixed Cost	$                   1,818.00	$                     1,818.00

• Employee Compensation: Y = $ 0.77 X + $ 8039

	Months	Units	Cost
High Level		10,000	$                   15,723.00
Low Level		5,000	$                   11,881.00
Difference		5,000	$                     3,842.00
A	Difference in Cost		$                     3,842.00
B	Difference in units		5,000
C = A/B	Variable cost per unit		$                           0.768
Working		High Level	Low Level
A	Total Cost	$                 15,723.00	$                   11,881.00
B	Total Units	10000	5000
C	Variable cost per unit	$                           0.77	$                             0.77
D = B x C	Total Variable cost	$                   7,684.00	$                     3,842.00
E = A - D	Total Fixed Cost	$                   8,039.00	$                     8,039.00

• Advertising: Y = $ 0 X + $ 1500