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I need help with 2 questions relating to Cost Behavior and Cost-Volume-Profit Analysis. See attached for details... QUESTION 1 1. Willco Inc. manufactures electronic parts.
I need help with 2 questions relating to "Cost Behavior and Cost-Volume-Profit Analysis". See attached for details...
QUESTION 1 1. Willco Inc. manufactures electronic parts. They are analyzing their monthly maintenance costs to determine the best way to budget these costs in the future. They have collected the following data for the last 6 months: Using the HighLow Method, if Willco Inc. expects to operate the machines for a total of 32,000 hours in the next month, calculate the expected maintenance costs. a. $31,232 b. $32,512 c. $64,755 d. $63,947 e. $65,227 QUESTION 2 1. Baker Company's sales mix is 3 units of A, 2 units of B, and 1 unit of C. Selling prices for each product are $20, $30, and $40, respectively. Variable costs per unit are $12, $18, and $24, respectively. Fixed costs are $320,000. What is the breakeven point in units of A, B and C? a. A 15,000; B 10,000; C 5,000. b. A 12,000; B 8,000; C 4,000. c. A 18,000; B 12,000; C 6,000. d. A 5,000; B 10,000; C 15,000. e. A 4,000; B 8,000; C 12,000Step by Step Solution
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