Exercise D2-11Crane Flower Cart incurred the following monthly costs.Bouquets Sold5,0007,50010,000Balloons...Exercise D2-11Crane Flower Cart incurred...

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Accounting

Exercise D2-11
Crane Flower Cart incurred the following monthly costs.
Bouquets Sold
5,000 7,500 10,000
Balloons (10 per bouquet) $ 10,000 $ 14,000 $ 18,000
Insurance $ 5,000 $ 5,000 $ 5,000
Delivery $ 5,500 $ 7,750 $ 10,000
Employee compensation $ 10,000 $ 12,500 $ 15,000
Advertising $ 1,500 $ 1,500 $ 1,500

Using the form y = mx + b, estimate the cost formula foreach cost incurred by Crane Flower Cart. (Round unitcost to 2 decimal places, e.g. 52.75. If the cost equation has novariable component enter 0 for the amount.)
Balloons
Insurance
Delivery
Employee Compensation
Advertising

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4.0 Ratings (400 Votes)

Answer As per Highlow method Variable Cost per Unit y2 y1 x2 x1 Total Cost at Highest Level of Activity y2 Total Cost at Lowest Level of Activity y1 Total Units at Highest Level of Activity x2 Total Units at Lowest Level of Activity x1 Total Cost b mx Total Cost Fixed Cost Variable Cost per Unit Units Balloons Total Cost at Highest Level of Activity y2 18000 Total Cost See Answer

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In: AccountingExercise D2-11Crane Flower Cart incurred the following monthly costs.Bouquets Sold5,0007,50010,000Balloons...Exercise D2-11Crane Flower Cart incurred the following monthly costs.Bouquets Sold5,0007,50010,000Balloons (10 per bouquet)$10,000$14,000$18,000Insurance$5,000$5,000$5,000Delivery$5,500$7,750$10,000Employee compensation$10,000$12,500$15,000Advertising$1,500$1,500$1,500Using the form y = mx + b, estimate the cost formula foreach cost incurred by Crane Flower Cart. (Round unitcost to 2 decimal places, e.g. 52.75. If the cost equation has novariable component enter 0 for the amount.)BalloonsInsuranceDeliveryEmployee CompensationAdvertising

	Bouquets Sold
	5,000		7,500		10,000
Balloons (10 per bouquet)	$	10,000	$	14,000	$	18,000
Insurance	$	5,000	$	5,000	$	5,000
Delivery	$	5,500	$	7,750	$	10,000
Employee compensation	$	10,000	$	12,500	$	15,000
Advertising	$	1,500	$	1,500	$	1,500