Question
Question 1: Management accounting and business environment and cost concepts 25 MARKS a. Dhaka Limited has provided the following data regarding its distribution expenses over
Question 1: Management accounting and business environment and cost concepts 25 MARKS a. Dhaka Limited has provided the following data regarding its distribution expenses over the last few months.
| Boxes delivered | Distribution expense |
May | 54,000 | $436,000 |
June | 42,000 | $342,000 |
July | 46,000 | $370,000 |
August | 56,000 | $454,000 |
September | 48,000 | $380,000 |
October | 44,000 | $360,000 |
November | 50,000 | $390,000 |
December | 60,000 | $468,000 |
i. At a recent meeting, the companys management team was trying to determine whether the Distribution Expense (as indicated in the above Table) is a variable, fixed, or mixed cost. In that meeting, Jonas Martin a Marketing Manager made the following statement: I believe Distribution Expense is a variable expense. This is because I can see that when the number of boxes delivered varies in a month, the distribution expense also varies for that month. Do you agree or disagree with Jonass statement? Explain your answers. [Maximum word limit: 270 words]
(9 marks)
ii. The company estimates that in the coming January, it will deliver 75,000 boxes. Using the high-low method, what will be the total delivery cost?
(9 marks)
Plz, just answer Question ii
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