Estimate the total fixed cost per month

Assignment Help Finance Basics
Reference no: EM13273034

Denburg Company provides information about its activity for the first four months of 2014. The management of the company wants to determine the nature of the costs.

Month                 Miles                Total Cost

January                 80,000                 $144,000

February               50,000                   120,000

March                  70,000                   141,000

April                    90,000                   195,000

a) Estimate the variable cost per mile.

b) Estimate the total fixed cost per month.

c) Express a formula to estimate the total costs at other activity levels, defining your terms, and identify any facts assumed by your assumption.

d) What method did you use to make your estimates in "a" and "b" above? Are there any other possible methods that can be used? If so, state the advantages of each.

 

Reference no: EM13273034

Questions Cloud

Fieldsman would intuitively solve to catch the ball : A cricket ball is thrown high up in the air and a fielder is attempting to catch the ball as it drops. Analyze the control problem that the fieldsman would intuitively solve to catch the ball.
How much did the company spend on new fixed assets : For the year just ended, Ypsilanti Yak Yogurt shows an increase in its net fixed assets account of $605. The company took $190 in depreciation expense for the year. How much did the company spend on new fixed assets?
Explain high kinetic energy and low probability : Sketch a well behaved wave function in 1-d with the labels I. High probability and high kinetic energy, ii low probability and low kinetic energy, ii high kinetic energy and low probability. Which of these (I-iii) will potential energy be highest
What is the highest rate you can afford : Assume monthly compounding, what is the highest rate you can afford on a 60-month APR loan?
Estimate the total fixed cost per month : What method did you use to make your estimates in "a" and "b" above? Are there any other possible methods that can be used? If so, state the advantages of each.
Culture and the impacts european intervention : Discuss their culture and the impacts European intervention had on their culture on the natives (Amerindians- Arawaks and Caribs).
Find the magnitude of the average force exerted on the ball : A 0.11-kg rubber ball is dropped onto a table. The speed of the ball right before it hits the table is 5.9 m/s. what is the magnitude of the average force exerted on the ball by the table
How effective discharge planning forms are : How effective discharge planning forms are when clinicians and nurses are preparing a patient for discharge - brief description of the research and some key headings for your literature review.
Explain a silicon wafer is etched in a cl2 plasma : A silicon wafer is etched in a Cl2 plasma. A mass flow controller (used to meter the gas flow fed to the reactor) shows a reading of 100 sccm (sccm=standard cm3 per min; standard conditions are 273 K and 1 atm). The etching reactor operates at 100..

Reviews

Write a Review

Finance Basics Questions & Answers

  An analysis of your fixed-income holdings.

increased from 25% to 30%, while your state marginal bracket remained 4.5%? • A corporate bond with a 5.1% after-tax return • An out-of-state municipal bond with a 5.0% after-tax return • An in-state municipal bond with a 4.8% after-tax return

  Computation of effect of hiring employees

Computation of effect of hiring employees and what should the company do to meet this demand

  Determine the credit amount

The Snow Company issues 10,000 shares for $50 par value preferred stock for cash at $60 per share. The entry to record the transaction will consist of a debit to Cash for $600,000 and a credit or credits to

  Capital projects in foreign countries-caribbean

Discuss a situation where a Capital Project in a foreign country with excellent business potential might not be to the advantage of the Parent. Discuss this from the standpoint of Cash Flow, Currency Convertibility, Repatriation, and other Country..

  What is jack weighted average cost of capital

The U.S. Treasury bill is yielding 4 percent and the market risk premium is 7 percent. Jack's tax rate is 35 percent. What is Jack's weighted average cost of capital?

  What is the sustainable rate of growth

The Green Giant has a 6 percent profit margin and a 60 percent dividend payout ratio. The total asset turnover is 1.3 and the equity multiplier is 1.6. What is the sustainable rate of growth?

  Objective type question on bond yield and valuation

Objective type Question on Bond yield and Valuation and If the risk-free rate rises by 0.5% but the market risk premium declines by that same amount

  Computing amount of the loan repayments

XYZ Ltd paid= $200,000 for feasibility study on project about a year ago. You are needed to compute: The amount of the loan repayments. The accounting rate of return (gross and net).

  Determine the capital in excess of par account

CBA Corporation has 250,000 shares outstanding with a $5 par value. The shares were issued for $14. The stock is currently selling for $34.

  What is your quarterly payment

You borrowed $27,000 for your education to be repaid in quarterly installments for five years. If the interest rate is 9% compounded quarterly what is your quarterly payment?

  What is the present value of this annuity

Explain what stated rate will BankSouth have to offer to make its semiannual-compounding CD and what is the present value of this annuity if the opportunity cost rate is 10 percent annually?

  Prepare the pro forma statements

Proform a income statement Pro forma balance sheet Sales $ Assets $ Debt $ Costs Equity Net income $ Total $ Total $ Determine the external financing needed. (Negative amount should be indicated by a minus sign.) External financing needed $.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd