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9) Kendra's Corp. total utility costs during the past year were $1,200 during its highest month and $600 during its lowest month. These costs corresponded
9) Kendra's Corp. total utility costs during the past year were $1,200 during its highest month and $600 during its lowest month. These costs corresponded with 10,000 units of production during the high month and 2,000 units during the low month. What are the fixed and variable components of its utility costs using the high-low method?: a. $0.075 variable and $450 fixed b. $0.12 variable and $0 fixed c. $0.30 variable and $O fixed d. $0.06 variable and $600 fixed 10) Caranci Co. sells 100,000 wrenches for $12 a unit. Fixed costs are $300,000, and net income is $200,000. Wh should be reported as variable expenses in the CVP income statement? a. $1,000,000 b. $900,000 c. $500,000 d. $700,000 13) It costs a company $14 of variable costs and $6 of fixed costs to produce product Z200 that sells for $30. A foreign buyer offers to purchase 3,000 units at $18 each. If the special offer is accepted and produced with unused capacity, net income will: a. Decrease $6,000 b. Increase $6,000 c. Increase $12,000 d. Increase $9,000 5) Joba rt Company is currently operating at full capacity. It is considering buying a part from an outside supplier rather than making it in-house. If Jobart purchases the part, it can use the released productive capacity to generate additional income of $30,000 from producing a different product. When conducting incremental analysis in this make-or-by decision, the company should: a. Ignore the $30,000 b. Add $30,000 to other costs in the "Make" column c. Add $30,000 to other costs in the "Buy" column d. Subtract $30,000 from the other costs in the "Make" column
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