Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alisha Limited manufactures medical stents for use in heart bypass surgery. Based on past experience, Alisha has found that its total maintenance costs can be

Alisha Limited manufactures medical stents for use in heart bypass surgery. Based on past experience, Alisha has found that its total maintenance costs can be represented by the following formula:

Maintenance cost = $460,000 + $12.50 X

where X = Number of heart stents. Last year, Alisha produced 80,000 stents. Actual maintenance costs for the year were as expected.

Required:

1.What is the total maintenance cost incurred by Alisha last year? Round your answer to nearest dollar.

$

2.What is the total fixed maintenance cost incurred by Alisha last year? Round your answer to nearest dollar.

$

3.What is the total variable maintenance cost incurred by Alisha last year? Round your answer to nearest dollar.

$

4.What is the maintenance cost per unit produced? Round your answer two decimal places.

$per unit

5.What is the fixed maintenance cost per unit? Round your answer two decimal places.

$per unit

6.What is the variable maintenance cost per unit? Round your answer two decimal places.

$per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cambridge IGCSE And O Level Accounting Coursebook

Authors: Catherine Coucom

2nd Edition

1316502775, 978-1316502778

More Books

Students also viewed these Accounting questions

Question

What features should you look for in a secure build architecture?

Answered: 1 week ago