Hi,

Please answer these 3 questions.

Thank You,

Ben

Question 1) A recent income statement of Dragonwood Corporation reported the following data:

Units Sold 8,000

Sales Revenue $9,600,000

Variable Costs 6,000,000

Fixed Costs 2,600,000 If the company desired to earn a target profit of $1,270,000, it would have to sell:

Select one:

a. 5,778 units.

b. 8,600 units.

c. 10,160 units.

d. 11,908 units.

e. an amount other than those above.

My Question 2) What do each of the letters represent?

Refer to the figure above (see attached file for graph). At a given sales volume, the vertical distance between the fixed cost line and the total cost line represents:

Select one:

a. fixed cost.

b. variable cost.

c. profit or loss at that volume.

d. semivariable cost.

e. the safety margin.

Feedback

The correct answer is: variable cost.

Question 3) Hot'lanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: (Please show me how to get the answer)

The fixed utilities cost per month is:

Select one:

a. $3,764.

b. $4,400.

c. $4,760.

d. $5,100.

e. an amount other than those listed above.

Question 1) A recent income statement of Dragonwood Corporation reported the following data: Units Sold Sales Revenue Variable Costs Fixed Costs 8,000 $9,600,000 6,000,000 2,600,000 If the company desired to earn a target profit of $1,270,000, it would have to sell: Select one: a. 5,778 units. b. 8,600 units. c. 10,160 units. d. 11,908 units. e. an amount other than those above. My Question 2) What do each of the letters represent? Refer to the figure above. At a given sales volume, the vertical distance between the fixed cost line and the total cost line represents: Select one: a. fixed cost. b. variable cost. c. profit or loss at that volume. d. semivariable cost. e. the safety margin. Feedback The correct answer is: variable cost. Question 3) Hot'lanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: (Please show me how to get the answer) The fixed utilities cost per month is: Select one: a. $3,764. b. $4,400. c. $4,760. d. $5,100. e. an amount other than those listed above