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

  1. 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 = $1,600,000 + $300X, where X = Number of Heart Stents. Last year, Alisha produced 51,000 stents. Actual maintenance costs for the year were as expected.

    Required:

    If required, round your answers to the nearest cent.

    1. What is the total maintenance cost incurred by Alisha last year? $fill in the blank 1

    2. What is the total fixed maintenance cost incurred by Alisha last year? $fill in the blank 2

    3. What is the total variable maintenance cost incurred by Alisha last year? $fill in the blank 3

    4. What is the maintenance cost per unit produced? $fill in the blank 4per unit

    5. What is the fixed maintenance cost per unit? $fill in the blank 5per unit

    6. What is the variable maintenance cost per unit? $fill in the blank 6per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Contemporary Engineering Economics

Authors: Chan S. Park

5th edition

136118488, 978-8120342095, 8120342097, 978-0136118480