Question

1. Define the terms total fixed costs, total variable costs, and total costs.

Answer #1

E22-1.
Define and classify variable, fixed, and mixed
costs.
(LO 1)
Bonita Company manufactures a single product. Annual production
costs incurred in the manufacturing process are shown below for two
levels of production.
Costs Incurred
Production in Units
5,000
10,000
Production Costs
Total
Cost
Cost/Unit
Total
Cost
Cost/Unit
Direct materials
$8,000
$1.60
$16,000
$1.60
Direct labor
?9,500
?1.90
?19,000
?1.90
Utilities
?2,000
?0.40
??3,300
?0.33
Rent
?4,000
?0.80
??4,000
?0.40
Maintenance
???800
?0.16
??1,400
?0.14
Supervisory salaries
?1,000
?0.20
??1,000...

Define and know how to calculate the following variables: fixed
cost, variable costs, total cost, average fixed cost, average
variable cost, average total cost, and marginal cost.

Quantity
Total costs
Total variable costs
Marginal costs
Average total costs
Average variable costs
Average fixed costs
1
$20
2
$6
$5
3
$21
4
$10.50
$2.50
5
$9
Given the table, what is the marginal cost of producing the
fourth unit?
a. $20
b. $10
c. $5
d. $11
e. #31.50

Sunland Corp. had total variable costs of $193,800, total fixed
costs of $133,300, and total revenues of $340,000.
Compute the required sales in dollars to break even.
Required sales
$
Amanda Company reports the following total costs at two levels
of production.
Classify each cost as variable, fixed, or mixed.
5,000 Units
10,000 Units
Indirect labor
$ 3,000
$ 6,000
Fixed CostsMixed CostsVariable Costs
Property taxes
7,000
7,000
Fixed CostsMixed CostsVariable Costs
Direct labor
28,000
56,000
Fixed CostsMixed CostsVariable Costs...

11. Define the Marginal Cost, Average Total cost, Average
Variable cost, Average fixed cost?

Eastland Corp. had total variable costs of $150,000, total fixed
costs of $120,000, and total revenues of $250,000.
(a1)
Your answer is correct.
Calculate contribution margin ratio.
Contribution margin ratio
%
SHOW SOLUTION
SHOW ANSWER
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Attempts: 1 of 5 used
(a2)
Compute the required sales in dollars to break even.
Required sales
$

(a) Calculate marginal costs, total costs, average fixed costs,
average variable costs and average total costs, given the following
table. Fixed costs are $100.
Output
Total Variable Cost
Marginal Cost
Total Cost
Average Fixed Cost
Average Variable Cost
Average Total cost
0
0
1
60
2
90
3
110
4
150
5
230
6
450
7
610
8
810
(b) Between what levels of output is there increasing marginal
productivity?
(c) If labour were the only input to this production...

find the terms "Fixed Cost" & "Variable Cost":
1. Explain the terms in detail.
2. Explain how the cost of energy for the hypothetical energy
company, Canfield Energy Company can be both a fixed cost and a
variable c

The variable costs of Amina hospital represent 70% of total
revenue and fixed costs of AED 15,000,000 for the year 2019.
Required:
1. Compute the BEP expressed in total revenue.
2. If total revenue in 2019 was AED 70,000,000 from 60,000
patients, find out the BEP (Q).
3.If the average patient cant afford to pay more than $866, what
the professional advice that would give to the owners of Amina
Hospital. The answer should be supported by computation.

In year 1 Frodo Company has variable costs of $80 per
unit, total fixed costs of $200,000, and a break-even point of
5,000 units. If the company raises the sales price per unit by $10
the following year, how many units must Frodo Company sell to break
even in Year 2?
A.
3,000 units
B.
4,000 units
C.
6,000 units
D.
5,000 units

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