Question
Can you please help me with this assignment?I will thumb up. Thank you Question 1: john and son manufactures and sells three products: A ,B,and
Can you please help me with this assignment?I will thumb up. Thank you
Question 1:
john and son manufactures and sells three products: A ,B,and C Annual fixed costs are $415,250 and data about the three products follow for 2017.
X
Y
Y
Sales
$140,000
$470,000
$780,000
Variable cost
70,000
165,000
280,000
Required:
1)Determine the breakeven point
2)The management expects sales to increase by 9% in 2018. What is the expected operating income in 2018?
Question 2:
JOHN AND SON makes electronic product for the RCMP. The following data is for the first six months:
Direct Labor Hours
Manufacturing Overhead
January
44,000
$285,000
February
50,000
$310,000
March
56,000
$313,000
April
42,000
$237,250
May
33,000
$168,200
June
24,000
$152,500
Required:
1)Use the high-low method to estimate the cost formula
2)Estimate the total overhead cost at an activity level of 48,000 machine hours, using the separate estimates you obtained for its components.
Question 3:
SUNRIGHT has recently started to take the customer orders over the web site.Following is the past data for first six month:
Month
Customer Web site costs
Number of Web site hits
January
$8,860
11,600
February
$8,662
11,260
March
$9,002
11,300
April
$8,842
11,370
May
$8,220
10,100
June
$8,192
10,120
Required:
1)Using the high-low method, estimate the variable cost per Web site hit and the monthly fixed costs.
2)Determine the cost equation to estimate the customer Web site expenses for SUNRIGHT Online.
3)If Costco expects 9,500 Web site hits for July, what are their anticipated costs for July?
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