1) Your delivery business uses a rental truck, In an attempt to estimate future truck rental costsyou have collected the following information:MonthMiles drivenRental cost of truckJanuaryFebruary600$585620588March580574April640591May700610June680598If you drive the truck 640 miles in July, what should the total rental cost be? Use thehigh/low method.Do you think this is a decent estimate of what the cost will be? Why?

The high low method is used to segregate the mixed cost into variable cost and fixed cost. Other…

1) Your delivery business uses a rental truck, In an attempt to estimate future truck rental costs you have collected the following information: Month Miles driven Rental cost of truck January February 600 $585 620 588 March 580 574 April May June 640 591 700 610 680 598 If you drive the truck 640 miles in July, what should the total rental cost be? Use the high/low method. Do you think this is a decent estimate of what the cost will be? Why?

1) Your delivery business uses a rental truck, In an attempt to estimate future truck rental costs you have collected the following information: Month Miles driven Rental cost of truck January February 600 $585 620 588 March 580 574 April May June 640 591 700 610 680 598 If you drive the truck 640 miles in July, what should the total rental cost be? Use the high/low method. Do you think this is a decent estimate of what the cost will be? Why?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 12EB: Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month...

See similar textbooks

Similar questions

M, or L, for Design a method that calculates the monthly cost to rent a roadside billboard. Variables include the size of the billboard small, medium, or large) and its location (H, M, or L for high-, medium-, or low-traffic areas). The method should throw an exception if the size or location code is invalid. The monthly rental cost is shown in Table 11-1. High Traffic Medium Traffic Low Traffic Small size 900.00 500.00 200.00 Medium size 1600.00 1200.00 600.00 Large size 2000.00 1500.00 800.00 Table 11-1 Monthly billboard rental rates
Car Rentals The cost C, in dollars, of a one-day car rental ismodeled by the function C1x2 = 0.35x + 45, where x is thenumber of miles driven.(a) What is the cost if you drive x = 40 miles?(b) If the cost of renting the car is $108, how many miles didyou drive?(c) Suppose that you want the cost to be no more than $150.What is the maximum number of miles that you candrive?(d) What is the implied domain of C?(e) Interpret the slope.(f) Interpret the y-intercept.
Sandy, the owner of Sunshine Car Wash has found that her income changes depending on the number of cars she washes per month. Sandy wants to predict what her costs are going to be in the future, and has asked you to assist her with some calculations. She has given you the following information for the previous three months: September October NovemberNumber of cars washed 1 500 1 900 2 000Income for the month R61 000 R63 500 R76 000 Required:a) Use the high-low method to calculate the variable cost per unit. b) Use the high-low method to calculate the fixed cost per month c) Use the answers from questions a and b to predict the total cost for December if Sandy washes 2 200 cars.
Which of the following is an example of a mixed cost behavior? a. A rental van charges $50 / day for the first 100 miles, and $0.42 per mile beyond100 miles.b. A piece of equipment can be leased for a year for a fee of $14,000 regardless ofhow many hours it is operated.c. A vacation home charges $250 per day regardless of the number of occupants.d. A local utility charges $0.14 per kilowatt-hour of energy consumed.
Janice Huffman has decided to start Rundle Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $760 per month. Labor costs are expected to be $90 per house cleaned and supplies are expected to cost $6 per house. Required a. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of equipment a fixed or a variable cost? b. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of labor a fixed or a variable cost? c. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of supplies a fixed or a variable cost? d.…
Janice Huffman has decided to start Rundle Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $760 per month. Labor costs are expected to be $90 per house cleaned and supplies are expected to cost $6 per house. Required a. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of equipment a fixed or a variable cost? b. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of labor a fixed or a variable cost? c. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of supplies a fixed or a variable cost? d.…
Good morning, Please answer questions Patsy Smith is planning to sell her special knife for $15 per unit. She purchases units from alocal distributor for $6 each. She can return any unsold units for a full refund. Fixed costs forbooth rental, including lighting and security is $4500.Requireda) Compute the breakeven point in units sold. b) Suppose the unit purchased is $5 instead of $6, the fixed cost increases by $500, butthe selling price is unchanged. Compute the new breakeven point in units sold. c) Using the above data, explain how cost behaviour affects Patsy Smith’s decisionmaking?
A buyer for home furnishings orders merchandise from a North Carolina vendor totaling 2,800. The vendor offers two options a) 3/10 net 30 FOB Destination (to buyers' warehouse or (b) 6/10 FOB Factory. If transportation costs are @250, which would be the better option for the buyer?
Skittles Pet store provides a dog wash service. Its highest and lowest bills of $3800 and $2400 were incurred in the months of May and November, respectively. If 500 dogs were washed in May and 100 dogs were washed in November what was the fixed cost associated with the company's water bill? (Round any intermediate calculations. to the nearest cent and your final answer to the nearest dollar.) O $3800 O $1400 O $2050 O $2400 Next► - Previous
If Georgiana estimates 1400 customers next month, what is the estimated cost for nail supplies? Georgiana operates a nail salon. She is trying to plan her costs for the next month and is uncertain of how to estimate those costs. Help her estimate next month’s costs given the following information she collected, based on number of customers per month. Number of Customers 1300 1800 1500 1200 Nail supplies $4030 $5580 $4650 $3720 Equipment Rental 2200 2200 2200 2200 Electricity 274 364 310 256 Total $6504 $8144 $7160 $6176
ramon hernandez saw the following advertisement for a used volkswagen bug and decided to work out the numbers to be sure the ad had no errors. cash price $7,880 down payment $0 annual percentage rate 14.53% deferred price $11,131.80 or 60 payments at $185.53 per month a. calculate the amount financed: b. calculate the finance charge. (round your answer to the nearest cent.): c. calculate the apr by table lookup. (use table 14.1(b).) (round your answers to 2 decimal places.): d. calculate the monthly payment by formula. (round your answer to the nearest cent.): Calculate the monthly payment by table lookup at 14.50% (Use table 14.2 round your answer to the nearest cent):
Cost, Revenue, Profit You decide to begin selling ice cream cones at the local park and swap. Your cost for each ice cream cone is $1.33 plus you have to pay a fixed weekly fee of $240 for the booth. Your plan is to sell each ice cream cone for $2.75. 1. Write an expression to represent your total costs for the week if you sell n ice cream cones. Total Costs: 2. Write an expression to represent the revenue from the sale of n ice cream cones during the week. Revenue: 3. Write an expression that represents the profit for selling n ice cream cones in a given week. Profit: How many ice cream cones must you sell in order to make a positive profit? In order to make a positive profit, you would have to sell Select an answer ice cream cones. ↑