Question

Oak Island Amusements Center provides the following data on the costs of maintenance and the number...

Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last three years: Number of Visitors per Year: (thousands) Maintenance Costs ($000) 1,910 $ 3,075 2,090 3,372 4,350 6,735

Required: a. Use the high-low method to estimate the fixed cost of maintenance annually and the variable cost of maintenance per visitor. (Enter your answers in dollars not in thousands of dollars. Round "Variable cost" answer to 2 decimal places.)

b. The company expects a record 2,500,000 visitors next year. What would be the estimated maintenance costs? (Enter your answer in dollars not in thousands of dollars.)

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are given the following total costs for a production facility for protective cases for laptop...
You are given the following total costs for a production facility for protective cases for laptop computers: Number of units Produced ('000) 0 100 200 300 400 Total Cost ($'000) 600    2,000 3,200 4,200 6,600 Assume the production facility produces where average variable costs are minimized. If the price is $12.50 per case, what is your gain or loss? (If a loss, enter it as a negative number. Don't enter this as 'thousands of dollars' -- take into account...
Ivanhoe Corp. has collected the following data concerning its maintenance costs for the past 6 months....
Ivanhoe Corp. has collected the following data concerning its maintenance costs for the past 6 months. Units Produced Total Cost July 18,700 $39,712 August 33,344 50,016 September 37,512 57,310 October 22,924 40,126 November 41,680 77,629 December 39,596 64,604 Part 1 Compute the variable cost per unit using the high-low method. (Round answer to 2 decimal places, e.g. 2.25.) Variable cost per unit $enter the variable cost per unit in dollars rounded to 2 decimal places eTextbook and Media Assistance Used...
The maintenance department's costs are allocated to other departments based on the number of hours of...
The maintenance department's costs are allocated to other departments based on the number of hours of maintenance use by each department. The maintenance department has fixed costs of $500,000 and variable costs of $30 per hour of maintenance provided. The variable costs include the salaries of the maintenance workers. More maintenance workers can be added if greater maintenance is demanded by the other departments without affecting the fixed costs of the maintenance department. The maintenance department expects to provide 10,000...
Number of Units Produced ('000) 0 10 20 30 40 Total Cost                            ($'000) 600 2,000 3
Number of Units Produced ('000) 0 10 20 30 40 Total Cost                            ($'000) 600 2,000 3,200 4,200 6,600 Assume the production facility produces where average variable costs are minimized. If the price is $12.50 per case, what is your gain or loss? (If a loss, enter it as a negative number. Don't enter this as 'thousands of dollars' -- take into account that costs and output units are in thousands.)
The maintenance department's costs are allocated to other departments based on the number of hours of...
The maintenance department's costs are allocated to other departments based on the number of hours of maintenance use by each department. The maintenance department has fixed costs of $500,000 and variable costs of $30 per hour of maintenance provided. The variable costs include the salaries of the maintenance workers. More maintenance workers can be added if greater maintenance is demanded by the other departments without affecting the fixed costs of the maintenance department. The maintenance department expects to provide 10,000...
ABC Medical Center, has estimated the following costs for its inpatient services: Fixed costs $15,000,000; Variable...
ABC Medical Center, has estimated the following costs for its inpatient services: Fixed costs $15,000,000; Variable cost per inpatient day $150 The hospital expects to have 10,000 inpatient days next year. What is the hospital’s underlying cost structure? What are the hospitals expected total costs? What are the hospital’s estimated total costs at 12,500 inpatient days? At 17,500 inpatient days? What is the average cost per inpatient day at 12,500; 15,000, and 17,500 inpatient days?
Question 11 Pharoah provides shuttle service between four hotels near a medical center and an international...
Question 11 Pharoah provides shuttle service between four hotels near a medical center and an international airport. Pharoah uses two 10-passenger vans to offer 12 round trips per day. A recent month’s activity in the form of a cost-volume-profit income statement is shown below. Sales (1,340 passengers) $37,520 Variable costs     Fuel $5,673     Tolls and parking 2,739     Maintenance 968 9,380 Contribution margin 28,140 Fixed costs     Salaries 12,700     Depreciation 2,100     Insurance 2,000 16,800 Net income $11,340 (b) Without calculations, determine the contribution...
30. Hanung Corp has two service​ departments, Maintenance and Personnel. Maintenance Department costs of $310,000 are...
30. Hanung Corp has two service​ departments, Maintenance and Personnel. Maintenance Department costs of $310,000 are allocated on the basis of budgeted maintenance−hours. Personnel Department costs of $150,000 are allocated based on the number of employees. The costs of operating departments A and B are $184,000 and $276,000​, respectively. Data on budgeted maintenance−hours and number of employees are as​ follows:                                                                                                                     Support Departments Production Departments Maintenance Department Personnel Department A B Budgeted costs $310,000 $150,000 $184,000 $276,000 Budgeted maintenance−hours NA 880...
Cullumber Corp. has collected the following data concerning its maintenance costs for the past 6 months....
Cullumber Corp. has collected the following data concerning its maintenance costs for the past 6 months. Units Produced Total Cost July 20,190 $44,085 August 35,904 53,856 September 40,392 61,710 October 24,684 47,358 November 44,880 83,589 December 42,636 69,564 (a1) Compute the variable cost per unit using the high-low method. (Round answer to 2 decimal places, e.g. 2.25.) Variable cost per unit    (a2) Compute the fixed cost elements using the high-low method. Fixed costs
Calculating and Using Dual Charging Rates The expected costs for the Maintenance Department of Stazler, Inc.,...
Calculating and Using Dual Charging Rates The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $64,900 per year Variable costs (supplies): $1.35 per maintenance hour The Assembly and Packaging departments expect to use maintenance hours relatively evenly throughout the year. The Fabricating Department typically uses more maintenance hours in the month of November. Estimated usage in hours for the year and for the peak month is as follows: Yearly Hours...