HomeworkLib
Question

Your company is considering an expansion and preparing budgets with and without the expanded activities. You...

Your company is considering an expansion and preparing budgets with and without the expanded activities. You have been asked to predict the cost of shipping at several different activity levels. You believe pounds shipped is a good cost driver and you have gathered historical data from the last 6 accounting periods, as summarized in the following table:

Total cost of shipping Number of pounds shipped

Period 1 93740 25000

Period 2 75040 19500

Period 3 82350 22400

Period 4 82260 21300

Period 5 76800 19900

Period 6 89700 23800

You choose to use the High-Low method of estimating the fixed and variable components of a mixed cost. 1. What is the variable cost per pound? (Round to the nearest penny) 2. What is the fixed cost per period for shipping? (Round to the nearest dollar) 3. Use your results to predict the total cost of shipping in period 7 if 39000 pounds are expected.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
Your company is considering an expansion and preparing budgets with and without the expanded activities. You...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Please help with explanation. Thank you in advance. Brighton, Inc., manufactures kitchen tiles. The company recently...

    Please help with explanation. Thank you in advance. Brighton, Inc., manufactures kitchen tiles. The company recently expanded, and the controller believes that it will need to borrow cash to continue operations. It began negotiating for a one-month bank loan of $500,000 starting May 1. The bank would charge interest at the rate of 1.00 percent per month and require the company to repay interest and principal on May 31. In considering the loan, the bank requested a projected income statement...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT