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 = $1,750,000 + $125X, where X = Number of Heart Stents. Last year, Alisha produced 25,000 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

CIA Part 3 Business Knowledge For Internal Auditing 2021

Authors: MUHAMMAD ZAIN

1st Edition

B09B23JKZ8, 979-8739475527

More Books

Students also viewed these Accounting questions

Question

Use a three-step process to develop effective business messages.

Answered: 1 week ago