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Total costs were 72300 when 27000 units were produced and

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1.Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000 then their profit increases/decreases by how much?

Sales                                  $50,000                      

Variable Costs                   $7,500                      

Fixed Costs                       $27,000                      

Your Answer:

 

2.Susan is trying to decide whether or not to attend college during the next 12-week session. She has the following options:

1. Attend college full-time at a cost of $1,200.

2. Attend college part-time at a cost of $700 and work part-time earning $1,700.

3. Work full-time earning $5,000.

What is Susan's incremental profit if she chooses option 3 over option 2?

3.Total costs were $72,300 when 27,000 units were produced and $94,000 when 35,000 units were produced. Use the high-low method to find the estimated total costs for a production level of 32,000 units.

Reference no: EM13570468

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