Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following data have been extracted from the records of Puzzle Incorporated: a. Calculate the missing costs. b. Calculate the cost formula for mixed cost

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The following data have been extracted from the records of Puzzle Incorporated: a. Calculate the missing costs. b. Calculate the cost formula for mixed cost using the high-low method. c. Calculate the total cost that would be incurred for the production of 18,020 units. d. Identify the two key cost behavior assumptions made in the calculation of your answ Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Calculate the cost formula for mixed cost using the high-low method. Note: Do not round intermediate calculations. Round "Variable rate"" to 2 decimal places. The following data have been extracted from the records of Puzzle Incorporated: a. Calculate the missing costs. b. Calculate the cost formula for mixed cost using the high-low method. c. Calculate the total cost that would be incurred for the production of 18,020 units. d. Identify the two key cost behavior assumptions made in the calculation of your answer to part c Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Calculate the total cost that would be incurred for the production of 18,020 units. Note: Do not round intermediate calculations. Current operating income for Bay Area Cycles Company is $24.000. Selling price per unit is $100, the contribution margin ratio is 30 and fixed expense is $96,000 Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? 2. How many additional unit sales would be necessary to achieve operating income of $60,000 ? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. How many additional unit sales would be necessary to achieve operating income of $60,000 ? Jen and Barry's ice cream shop charges $1.7 for a cone. Variable expenses are $0.37 per cone, and fixed costs totai $2.000 per month A Valentine's Day promotion is being planned for the second week of February. During this week, a person buying a cone at the regular price would receive a free cone for a friend. It is estimated that 675 additional cones would be sold and that 875 cones would be given away. Advertising costs for the promotion would be $125. Required: a. Calculate the effect of the promotion on operating income for the second week of February. b. Do you think the promotion should occur? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Calculate the effect of the promotion on operating income for the second week of february. Notet Do not round intermediate calculation and round your final answer to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions