Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cost Behavior Alisha Incorporated manufactures medical stents for use in heart bypass surgery. Based on past experience, Alisha has found that its total maintenance costs

Cost Behavior

Alisha Incorporated 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 = $334,000 + $16.60X where X = Number of Heart Stents. Last year, Alisha produced 90,000 stents. Actual maintenance costs for the year were as expected.

image text in transcribed

Required: 1. What is the total maintenance cost incurred by Alisha last year? Round your answer to the nearest dollar. 2. What is the total fixed maintenance cost incurred by Alisha last year? Round your answer to the nearest dollar. 3. What is the total variable maintenance cost incurred by Alisha last year? Round your answer to the 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

Finance For Non-Finance People

Authors: Sandeep Goel

2nd Edition

0367185083, 9780367185084

More Books

Students also viewed these Accounting questions

Question

What are the main reasons causing U.S. firms to cross-list abroad?

Answered: 1 week ago

Question

K Describe the two ways that investors make money with stock

Answered: 1 week ago

Question

In bargaining, does it really matter who makes the first offer?

Answered: 1 week ago