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What am I doing wrong for Maintenance? I did the same equation setup as Utilities and it didn't work? Maintenance = $270/Month Cost of Production
What am I doing wrong for Maintenance? I did the same equation setup as Utilities and it didn't work?
Maintenance = $270/Month
Cost of Production - Monthly cost = Variable cost
1,100 - 270
=830
Variable Cost/Cost of Production = Cost per Unit
830/1,100
=0.75/Unit
Is this not correct?
E5-4 and E5-5 [LO 5-1, 5-5] [The following information applies to the questions displayed below.] 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 1,500 units, and monthly production costs for the production of 1,100 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. E5-4 (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 to1,500 units. Enter answer as an equation in the form of y= +bx. 4. Calculate Morning Dove's expected total cost if production increased to 1,300 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 placesStep by Step Solution
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