Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the graph below was produced after recording the p

The graph below was produced after recording the processing costs of Oki Products observed over...

80.2K

Verified Solution

Question

Accounting

The graph below was produced after recording the processing costs of Oki Products observed over the last 10 months using the following data: Month Units Produced Processing Costs 1 7,500 $44,000 2 11,000 52,000 3 15,000 59,000 4 5,500 38,000 5 9,000 47,000 6 8,500 52,000 7 2,500 28,000 8 7,000 41,000 9 11,500 52,000 10 6,000 41,000

null

Required:

a. Using the graph identify the monthly fixed costs. What additional information might you determine from the graph? b. The chart above indicates total processing costs of $47,000 at a level of 9,000 units for month 5. Using this level of activity and your fixed costs determined in a, calculate the variable cost per unit to the nearest cent. Express your results in the form of a linear equation y = a + bx. c. Use the high low method to determine the variable cost per unit and fixed cost per month. Express your results in the form of a linear equation y = a + bx. d. Comment on the differences between the results in b and c. Which result would you consider more accurate and why?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Psychology
1.2K views

Discuss the meaning of Wilfred Owens' poem \"Strange Meeting\". What is the relationship between the two...

Biology
1.2K views

Match the following organisms with their phyla subphyla or class Sea star Sand dollar Sea...

Geometry
1.2K views

Question 10 Points 1 If the point A 10 4 is reflected above the line...

Basic Math
1.2K views

Find the area of a sector that has a central angle of 200 and a...

Calculus
1.2K views

Consider a 400 N weight suspended by two wires as shown in the figure Find...

Algebra
1.2K views

6 Multiply each expr 9 k In which expressions does the entire denominator cancel a...

Algebra
1.2K views

Use the leading coefficient test to determine whether y o or y o as x...

Accounting
1.2K views

when the auditors client's bank inquries if the inventory is pledged as collateral for a...

Accounting
1.2K views

Milden Company is a merchandiser that plans to sell 43,000 units during the next quarter...

Accounting
1.2K views

Willis owns 60% of Yonex, On January 1, 2011 Yonex has bonds payable outstanding of...

Accounting
1.2K views

Detail the impact of the following transactions on the accounting equation, by populating the table...

Accounting
1.2K views

Beck Manufacturing reports the information below for 2015. Raw Materials Inventory Begin. Inv. 10,000 +...