Reference no: EM132067427
Quinton Woodcraft Company (QWC) manufactures "antique" wooden cabinets to house modern televisions. QWC began operations in January of last year.
Joe Quinton, the owner, asks for your assistance. He believes that he needs to better understand the cost of the cabinets for pricing purposes.
You have collected the following data concerning actual production over the past year:
|
Month
|
Number of Cabinets Produced
|
Total Cost
|
|
January
|
830
|
|
$
|
21,700
|
|
|
February
|
3,650
|
|
|
32,700
|
|
|
March
|
1,940
|
|
|
29,600
|
|
|
April
|
620
|
|
|
18,800
|
|
|
May
|
1,570
|
|
|
28,700
|
|
|
June
|
1,290
|
|
|
27,100
|
|
|
July
|
1,110
|
|
|
25,700
|
|
|
August
|
1,720
|
|
|
31,200
|
|
|
September
|
2,280
|
|
|
32,500
|
|
|
October
|
2,950
|
|
|
31,900
|
|
|
November
|
3,290
|
|
|
32,500
|
|
|
December
|
310
|
|
|
16,600
|
|
Required:
a. To understand the department's cost behavior, you decide to plot the points on graph paper and sketch a total cost line.
(1) Enter the number of units and their costs in increasing order.
Month
Number of Cabinets Produced
Total Cost
b. Using the high-low method, compute the total cost equation for the preceding data. (Round "Cost per unit" answer to 4 decimal places. Round your final answers to the nearest whole dollar amount.)
(1) Compute the variable cost per unit.
Variable cost per unit -
(2) Compute total fixed costs
Total fixed costs -
(3) Calculate the total cost assuming 1,500 cabinets are made.
Total costs
|
What is the projects free cash flow in year 1
: Racin' Scooters is introducing a new product and has an expected change in EBIT of $455,000. Racin' Scooters has a 34 percent marginal tax rate.
|
|
Estimate the normal boiling point for ccl4
: At 57.8 °C, the vapor pressure of CCl4 is 54.0 kPa, and its enthalpy of vaporization is 33.05 kJ/mol.
|
|
Calculate the operating cash flow for this project
: At the end of the project, the fixed asset will be worthless. The project is estimated to generate $2,040,000 in annual sales and annual costs of $735,000.
|
|
What is the ratio of wooden object
: What is the ratio of 14C (t1/2 = 5730 years) in a wooden object made in 100 BC to one made from the same kind of wood in 700 BC?
|
|
Compute the total cost equation for the preceding data
: Joe Quinton, the owner, asks for your assistance. He believes that he needs to better understand the cost of the cabinets for pricing purposes.
|
|
What is the equation for the beta decay
: What is the equation for the beta decay of Xe-133. Express as a nuclear equation
|
|
How much is the capitalized operating lease liability
: How much is the capitalized operating lease liability that you would present on the re-stated balance sheet?
|
|
Calculate the profitability index for each project
: Assume they are not mutually exclusive projects, which means that you could possibly invest in both.
|
|
What will be the value of the investment after 6 months
: Suppose that the treasurer of IBM has an extra cash reserve of $100,000,000 to invest for six months.
|