Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i need help plese answer the following. High-low method for a service company Slerra Railroad Inc. decided to use the high-low method and operating data
i need help plese answer the following.
High-low method for a service company Slerra Railroad Inc. decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Slerra Rallroad is "gross-ton miles," which is the total number of tons multiplied by the miles moved. Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (If required, round to two decimal places.) s per gross-ton mile Total fixed cost s The Boston Beer Company Inc. (SAM) produces Samuel Adams beer and othet alcohalic beverages. Boston Beer reported the following operating information for a recent year (in thousands): In addition, assume that Boston Beer sold 7,400 thousand barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 40% of selling, general, and administrative expenses. Assume that the remaining costs are fixed. For the following year, assume that Boston Beer expects pricing, variable costs per barrel, and fixed costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $50 million. a. Compute the break-even number of barrels for the current year. Round to the nearest thousand of barrels, In computing variable and fixed costs, round to the nearest thousand. In computing the per-barrel amounts, round to the nearest cent. thousand barreis b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest thousand of barrels. thousand barrels Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started