Cost Analysis and Break-even Calculations: A Study of Variable and Fixed Costs
This assignment solution explores cost analysis and break-even calculations in financial decision-making.
Sophia Johnson
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Cost Analysis and Break-even Calculations: A Study of Variable and Fixed
Costs
Homework help
Question 1 (1 point)
Thomas Train has collected the following information over the last six months.
Month Units produced Total costs
March 10,000 $25,600
April 12,000 26,200
May 18,600 27,600
June 13,000 26,450
July 12,000 26,000
August 15,000 26,500
Using the high-low method, what is the variable cost per unit?
Your Answer:
Question 1 options:
($27,600 - $25,600) / (18,000 - 10,000) units = $2,000 / 8,000 units = $0.25 per unit Variable cost
$0.25
Answer
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Question 2 (1 point)
Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel
customers pay $150 per night. Data for the past 7 months are as follows:
JanuaryFebruary March April May June July
Number of rooms cleaned 250 160 200 150 270 170 260
Cleaning cost $6,450 $4,060$5,100$4,100$6,880$4,200$6,530
How much are estimated monthly variable costs using the high-low method?
Costs
Homework help
Question 1 (1 point)
Thomas Train has collected the following information over the last six months.
Month Units produced Total costs
March 10,000 $25,600
April 12,000 26,200
May 18,600 27,600
June 13,000 26,450
July 12,000 26,000
August 15,000 26,500
Using the high-low method, what is the variable cost per unit?
Your Answer:
Question 1 options:
($27,600 - $25,600) / (18,000 - 10,000) units = $2,000 / 8,000 units = $0.25 per unit Variable cost
$0.25
Answer
Save
Question 2 (1 point)
Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel
customers pay $150 per night. Data for the past 7 months are as follows:
JanuaryFebruary March April May June July
Number of rooms cleaned 250 160 200 150 270 170 260
Cleaning cost $6,450 $4,060$5,100$4,100$6,880$4,200$6,530
How much are estimated monthly variable costs using the high-low method?
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Subject
Finance