Question: Acme Mailboxes produces decorative mailboxes. The companys average cost per unit is $ 23.43 when it produces 1,400 mailboxes. Requirements 1. What is the total

Acme Mailboxes produces decorative mailboxes. The company’s average cost per unit is $ 23.43 when it produces 1,400 mailboxes.

Requirements
1. What is the total cost of producing 1,400 mailboxes?
2. If $ 20,202 of the total costs are fixed, what is the variable cost of producing each mailbox?
3. Write Acme Mailboxes’ cost equation.
4. If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,600 mailboxes?
5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,600 mailboxes?
6. What is the dollar difference between your answers to Requirements 4 and 5? Which approach to forecasting costs is appropriate? Why?

Step by Step Solution

★★★★★

3.38 Rating (176 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Req 1 Average cost per unit Total cost number of units 2343 Total cost 1400 units 32802 To... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

322-B-M-A-C-B (893).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Mega Games, Inc., produces two games, Extreme Combat and Judgment Weekend, with product structures as shown. An order for 100 units of Extreme Combat and 175 units of Judgment Weekend has been...

If the normal cost per unit is $ 45, the ordering cost per order is $70; the annual demand is 2500 units, and the holding cost is 55% of the cost per unit. What order quantity will minimize the total...

Rollins Mailboxes produces decorative mailboxes. The company's average cost per unit is $20.43 when it produces 1,600 mailboxes. Requirements 1. What is the total cost of producing 1,600 mailboxes?...

Melcher Mailboxes produces decorative mailboxes. The company's average cost per unit is $20.43 when it produces 1,000 mailboxes. Requirements 1. What is the total cost of producing 1,000 mailboxes?...

Rollins Mailbox produces decorative mailboxes. The company's average cost per unit is $23.43 when it produces 1,400 mailboxes. Requirements 1. What is the total cost of producing 1,400 mailboxes? 2....

help asap Mailbox Magic produces decorative mailboxes. The company's average cost per unit is $23.43 when it produces 1,400 mailboxes Requirements 1. What is the total cost of producing 1,400...

Part 1 OT 5 Points: 0 OT 4 Rollins Mailbox produces decorative mailboxes. The company's average cost per unit is $23.43 when it produces 1,400 mailboxes. Read the requirements . Requirement 1. What...

Branson Mailbox produces decorative mailboxes. The company's average cost per unit is $23.43 when it produces 1,400 mailboxes. Requirements 1. What is the total cost of producing 1,400 mailboxes? 2....

Acme Mailbox produces decorative mailboxes. The company's average cost per unit is $27.43 when it produces 1,700 maiboxes. Read the requitements. Requirement 1 . What is the total cost of producing...

Safari 6:31 PM Wed Mar 1 .ill @ 61% Chapter 6 In Class Problems SPR 2023(2) - Tagged Q Done E6-24A Use unit cost data to forecast total costs Rollins Mailbox produces decorative mailboxes. The...

Freedom Mailbox produces decorative mailboxes. The company's average cost per unit is $24.43 when it produces 1,300 mailboxes. Requirements 1. What is the total cost of producing 1,300 mailboxes? 2....

Matching Elements with Financial Statements Match each element with its financial statement by entering the appropriate letter in the space provided. Element Financial Statement ____(1) Expenses A....

Using a chart of accounts similar to that for Problem 11A-1, record the following transactions for Jennifer Reid, Physiotherapist, of Bathurst, in her synoptic journal and then prove the journal:...

Video Solution A new project will cost $80,000 initially and will last for 7 years, at which time its salvage value will be $2,500. Annual revenues are anticipated to be $15,000 per year. For a MARR...

Describe the role of the rumen microflora in (i) the nutrient digestion of feed/fermentation and (ii) the environmental impact of agriculture. Outline some of the current technologies employed to...

A viscometer is built from a conical pointed shaft that turns in a conical bearing, as shown. The gap between shaft and bearing is filled with a sample of the test oil. Obtain an algebraic expression...

Mixo Inc. is forecasting its products quality on a scale of 0 to 100 based on how many hours are spent for each product. Data are provided in the table below. What will be the quality if the company...

On January 1, 2012, A Company signed an non-cancelable to lease a machine from B for 3 years. The machinery had a cost and lair value of $600,000 and a useful life of 7 years. The lease paid annual...

How does the plain view doctrine apply to computer searches? If law enforcement offi cers have a valid warrant to search a com puter for evidence of a specific crime, when, if ever, do other computer...

Refer to Broadway Floral's data in E6-25A. Use the high-low method to determine Broadway Floral's cost equation for van operating costs. Use your results to predict van operating costs at a volume of...

Refer to the Broadway Floral data in E6-25A. Use Microsoft Excel to do the following: Requirements 1. Run a regression analysis. 2. Determine the company's cost equation (use the output from the...

Assume that Broadway Floral does a regression analysis on the next year's data using Excel. The output generated by Excel is as follows: Requirements 1. Determine the firm's cost equation (use the...

Data Dredgingandp-hackingare umbrella terms for the dangerous practice of automatically testing a large number of hypotheses on the entirety or subsets of a single dataset in order to find...

I need hell for css3/html /* Center Article Styles */ CSS Styles Part 2 Center Article Styles Go to the Center Article Styles section. The article element contains an image and brief description of...

A county now paves its highways using Asphalt A, but is considering switching to the more pricy Asphalt B. (which is reported to be more durable). On 5 different two-lane roadways, the two types of...