Hinrichs Corporation reports that at an activity level of 2,400 units, its total variable cost is $174,504 and its total fixed cost is $55,080. Required:For the activity level of 2,700 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range.
What will be an ideal response?
Variable cost = $174,504 ÷ 2,400 units = $72.71 per unit
| Activity level | $ | 2,700 |
| Total cost: | ||
| Variable cost (a) [2,700 units × $72.71 per unit] | 196,317 | |
| Fixed cost (b) | 55,080 | |
| Total (c) | $ | 251,397 |
| Cost per unit: | ||
| Variable cost (d) | $ | 72.71 |
| Fixed cost (e) [$55,080 ÷ 2,700 units] | 20.40 | |
| Total (f) | $ | 93.11 |
You might also like to view...
The distribution of cash, as the final process in winding up the affairs of a partnership, is based on the income-sharing ratio
a. True b. False Indicate whether the statement is true or false
Moral appeals ________
A) relate to the audience's self-interest by showing that the product will produce the desired benefits B) attempt to stir up either negative or positive emotions that can motivate purchase C) range from love, joy, and humor to fear and guilt D) are directed to an audience's sense of what is "right" and "proper" E) are based on the idea that practical benefits are more important for consumers than emotions
Which of the following refers to the extent to which a person's sensory receptors are capable of registering a stimulus?
A) cognition B) attention C) affect D) interpretation E) exposure
Answer the following statements true (T) or false (F)
The jurisprudential view of the FASB is concerned with the theory embodied in the conceptual framework.