Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0 to 1,800 units, and monthly production costs for the production of 1,400 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. 5-4 (Algo) Determining Cost Behavior and Calculating Expected Cost [LO 5-1] Required: 1. Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination thereof). 2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. 3. State Morning Dove's linear cost equation for a production level of 0 to1,800 units. Enter answer as an equation in the form of y=a+ bx. 4. Calculate Morning Dove's expected total cost if production increased to 1,600 units per month. Enter answer as an equation in the form of y=a+bx. Complete this question by entering your answers in the tabs below. Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination thereof). Note: Round your per unit value to 2 decimal places. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. Note: Round your intermediate calculations and variable cost per unit to 2 decimal places. State Morning Dove's linear cost equation for a production level of 0 to 1,800 units. Enter answer as an equation in the form of y=a+bx. Note: Round your intermediate calculations and variable cost per unit to 2 decimal places. Calculate Morning Dove's expected total cost if production increased to 1,600 units per month. Enter answer as an equation in the form of y=a+bx. Note: Round intermediate calculations and variable cost per unit to 2 decimal places
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