FREE Trial
This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!

Anita Kaur runs a courier service in downtown Seattle. She charges clients $0.62 per mile driven. Anita has determined that if she drives 2,450 miles in a month, her total operating cost is $725. If she drives 3,550 miles

Transcribed Image Text:

Anita Kaur runs a courier service in downtown Seattle. She charges clients $0.62 per mile driven. Anita has determined that if she drives 2,450 miles in a month, her total operating cost is $725. If she drives 3,550 miles in a month, her total operating cost is $857. Required: 1. Using the high-low method, determine Anita's variable and fixed operating cost components. 2. Complete the contribution margin income statement for Anita's service assuming she drove 1,600 miles last month. (Assume this falls within the relevant range of operations). Anita Kaur runs a courier service in downtown Seattle. She charges clients $0.62 per mile driven. Anita has determined that if she drives 2,450 miles in a month, her total operating cost is $725. If she drives 3,550 miles in a month, her total operating cost is $857. Required: 1. Using the high-low method, determine Anita's variable and fixed operating cost components. 2. Complete the contribution margin income statement for Anita's service assuming she drove 1,600 miles last month. (Assume this falls within the relevant range of operations). Anita Kaur runs a courier service in downtown Seattle. She charges clients $0.62 per mile driven. Anita has determined that if she drives 2,450 miles in a month, her total operating cost is $725. If she drives 3,550 miles in a month, her total operating cost is $857. Required: 1. Using the high-low method, determine Anita's variable and fixed operating cost components. 2. Complete the contribution margin income statement for Anita's service assuming she drove 1,600 miles last month. (Assume this falls within the relevant range of operations).

  • Expert Answer

To determine Anita s variable and fixed operating cost components using the high low method we need View the full answer


answer-question
Related Book For  answer-question
Managerial Accounting

Managerial Accounting

ISBN: 978-0078025518

2nd edition

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

See More Books
Post a Question and Get Help

Cannot find your solution?

Post a FREE question now and get an answer within minutes*.

*Average response time.
Posted Date: March 22, 2023 08:39:13
See More Questions

Students also viewed these accounting questions

Q:
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.50 per mile driven. Joyce has determined that if she drives 3,300 miles in a month, her total operating cost is $875....
A:
Req 1 Req 2 Variable cost per unit Difference in t......
Q:
es Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.42 per mile driven. Joyce has determined that if she drives 3,300 miles in a month, her total operating cost is...
A:
Click to View...
Q:
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.50 per mile driven. Joyce has determined that if she drives 3,300 miles in a month, her total operating cost is $875....
A:
Req 1 Break even units Total fixed cost Unit contribution margin Unit c......
Q:
Ruff, Tuff, and Duff are parners sharing profits and losses 30/30/40 respectively. Their balance sheet is below: Cash Receivable from Ruff Property & Equipment $200,000 10,000 500,000 $710,000...
A:
Answer Liquidation of a Partnership Accounting for the L......
Q:
Describe the three different types of managers.
A:
A general manager supervises the activities of several departments or......
Q:
Professor Lennon from the University of New Mexico has been working on a new cholesterol medication that is being called TriglicoCleaner. The university is now conducting studies to determine if...
A:
Click to View...
Q:
Custer was killed by the Indians, and Lincoln wrote the Gettysburg Address only if either Washington was assassinated or Julius Caesar conquered America. Write the following compound statements in...
A:
Click to View...
Q:
Donkey Bikes could sell its bicycles to retailers either assembled or unassembled. The cost of an unassembled bike is as follows. Direct materials ............$150 Direct labor ..............70...
A:
a Sell Process Further Net Income Increase Decrease Sales per unit Costs per uni......
Q:
Imagine that you are hired as a database designer at one of the fastest-growing e-commerce companies called Atazon. Popularity of Atazon has increased manifold-times during pandemic and they want a...
A:
Identify Entities and Show Them Graphically Create three rectangles using Shapes in Word and label t......
Q:
Wednesday Addams is a graduating senior who is going to take her final exams next week. She divides her available weekend study time into 10 periods of equal length. She is taking four courses, two...
A:
To formulate the decision problem as an integer programming model we can define the following variab......
Q:
Find the values of endogenous variables using both substitution and elimination techniques. 3. Qa1 = 10 2P1 + P2 + P3 ; Qs1 = -1+ 8P, Qd2 = 20 + P1 2P2 ; Qs2 = -2 + 6P2 = - 6+3P3 Q 15 + , 2P3 ;...
A:
Please see the answer as attachment At equilibrium Qdn QsI......
Q:
Write a program with a function def repeat (string, n, delim) that returns the string string repeated n times, separated by the string delim (ex. space, ?, #, etc). Ex: If the input is: Enter a...
A:
main py 1......
Q:
Create an R script that utilizes at least five functions (each) found in these packages: Dplyr - Data Manipulation Tidyr - Data Manipulation Ggplot2 - Graphics
A:
Below is an example R script that utilizes functions from the dplyr tidyr and ggplot2 packages for d......
Q:
Create a equipment table with the following information: (Create a composite key) equipmentId - primary key equipmentDesc equipmentPrice - primary key b. Create an rental table with the following...
A:
Certainly here s how you can create the equipment table and rental table with the specified fields a......
Q:
1. Describe the similarity and difference(s) between a Priority Queue and a Heap. 2. Will any implementation of Priority Queue has better run time complexity than a Heap? Explain your answer in...
A:
Priority Queue vs Heap Similarities and Differences Priority queues and heaps are closely related data structures with the heap often being used as the underlying data structure for implementing a pri......
Q:
Find an artifact or an object that symbolizes mexican culture and explain how the artifact affects your identity and culture. Develop one theme that is symbolized in the cultural artifact You should...
A:
Introduction Imagine walking through the vibrant streets of Mexico surrounded by the rich tapestry of colors sounds and flavors that make up this diverse and captivating culture As you explore you com......
Q:
Michael and Michelle currently earn a combined gross income of $200,000 per year and each earns $100,000 per year. The currently pay $2100 per month on their mortgage and plan to continue to live int...
A:
ANSWER b 77 The wage replacement ratio generally refers to the percentage of pre retirement income n......
Q:
Cobb Manufacturing Company uses a process cost system and average costing. The following production data is for the month of June 2011. Production Costs Work in process, beginning of the month:...
A:
A C D 1 Question 2 Cost of work in process beginning of month Materials 3 000 2 6 Labor 1 500 500 Fa......
Q:
Prepare the journal entry to record Channel One Companys issuance of 100,000 shares of $0.50 par value common stock assuming the shares sell for: a. $0.50 cash per share. b. $2 cash per share.
A:
a Cash 50 000 Common Stock 0 50 Par Value 50 000......
Q:
Prepare the journal entry to record Selectist Companys issuance of 104,000 shares of no-par value common stock assuming the shares: a. Sell for $15 cash per share. b. Are exchanged for land valued at...
A:
a Cash 1 560 000 Common Stock No Par......
Q:
Sarazan Company issues a 4-year, 7.5% fixed-rate interest only, nonprepayable $1,000,000 note payable on December 31, 2019. It decides to change the interest rate from a fixed rate to variable rate...
A:
a Interest Expense 75 000 Cash 7 5 X 1 000 000......
Q:
Ito calculus and Ito's Lemma. Suppose dZ is the increment of a Wiener process and dX = (X(t), t)dt + o(X(t), t)dZ. (a) If F(X,t) = e"X, what is dF(X,t) (interpreted in the sense of Ito calculus)? (b)...
A:
Click to View...
Q:
In each case below, fill in the missing amount. Case #1 ............. Work in Process, October 1 .................. 5,000 gallons ........................Units started during October...
A:
Case 1 Units in ending work in process 2 500 Plus Units c......
Q:
The planning department of an electronics firm has set up the activities for developing and production of a new MP3 Player. Given the information below, develop a project network using Microsoft...
A:
The estimated completion date is 30 weeks which is well ahead of......
Q:
Identify the different departments on a typical cruise ship. Identify the type of personnel needed in each department.
A:
The departments on a typical cruise ship and the type of personnel needed are as follows Administration and Hotel Services this includes all departments on board the cruise ship except for the Bridge......
Q:
Don McCullum operates a travel agency called Don's Luxury Travel. He has five employees, all of whom are paid on a weekly basis. The travel agency uses a payroll register, individual employee...
A:
1 The Payroll Register can be found 2 GENERAL JOURNAL date description post ref debit credit 20 Mar......
Q:
you are given the following network 192. 168.1.0 /24 . Use VLSM to design a valid IP addressing scheme using the following requirements. 1. Network 1 needs 100 addresses. 2. Network 2 needs 20...
A:
To design a valid IP addressing scheme using VLSM Variable Length Subnet Masking for the given netwo......
Q:
a. Using measures of central tendency including the mean, median, and mode, describe annual food spending and annual household income for the 200 households in the Consumer Food database. Compare the...
A:
a Annual Food Spending Using both Minitab and Excel the mean annual spending on food is 8 966 and the median is 8 932 There are four modal values 9 09......
Q:
Cash Flow Hedge on January 2, 2010, Parton Company issues a 5-year, $10,000,000 note at LIBOR, with interest paid annually. The variable rate is reset at the end of each year. The LIBOR rate for the...
A:
An Interest swap in which a company changes its interest payments from variable to fixed......
Q:
Call Option on August 15, 2010. Outkast Co. invested idle cash by purchasing a call option on Counting Crows Inc. common shares for $360. The notional value of the call option is 400 shares, and the...
A:
a b c Call Option Cash August 15 2010 September 30 2010 Unrealize......
Q:
Eastern Clock Company has an outstanding issue of convertible bonds with a $1,000 par value. These bonds are convertible into 50 shares of common stock . They have a 10% annual coupon interest rate...
A:
a Years Payments Discount Rate Straight Bond Value 119 100 1......
Q:
Rose, a financial advisor, recommended that a client, Maureen, purchase shares in Mad Money Mutual Fund. Relying on Rose's recommendation the client purchased 100 units. The entire stock market...
A:
Whether Rose is liable to Maureen for recommending Mad Money Mutual Fund and earning a commission on......
Q:
Firm XYZ is evaluating a multi-year project with year=0 cash flow of -$1000 (investment) and a positive cash flow of $100 in year 1 growing at 3.5% per year until t-10 (values are displayed with two...
A:
To calculate the present value of the cash flows net of the initial investment we need to discount e......
Q:
The operating values of a centrifugal pump are given as Q = 100 m3/h, H = 50.97 m, and P = 17.5 kW. Calculate the operating values (Q, H, and P) of the geometrically similar new pump when the...
A:
SOLUTION To calculate the operating values Q H and P of the geometrically similar new pump we can us......
Q:
Two bonds have a face value of $1,000.One is a 5%, 15-year bond, valued to generate a yield of 8%.The other is a 7.5%, 20-year bond, valued to generate a 6% yield. Which of these two bonds has the...
A:
Click to View...
Q:
Some of the following sentences contain subject-verb agreement errors. Others are correct as written. If a sentence contains a subject-verb agreement error, cross out the incorrect verb, and write...
A:
1 Frequent absences was were the reason for the employee s firing 2 A sofa with a matching chair are......
Q:
In Problems 1520 establish each identity. sin (30) 3 sin - 4 sin 0
A:
To establish the identity sin 3 3sin 4sin 3 we can use the trigonometric angle sum formula for sine......
Q:
CRUZ, INC. Comparative Balance Sheets December 31, 2015 CRUZ, INC. Income Statement For Year Ended December 31, 2015 Required Use the indirect method to prepare the cash provided or used from...
A:
Cash flows from operating activities Net income 30 000 Adjustments to reconcile net income to op......
Q:
Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2010: The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its...
A:
Input Area Uncollected credit sales 5 Collected in the month of the sale 35 Collected in the fol......
Q:
Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2016: The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its...
A:
Input Area Uncollected credit sales 5 Collected in the month of the sale 35 Collected in the fol......
Q:
Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2017: The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its...
A:
The sales collections each month will be Sales collections......
Q:
The receiver most commonly used in AM and FM radio broadcast is the so-called superheterodyne receiver. Answer the following questions about this receiver. a. Draw the block diagram of a...
A:
So that mage frequency signal is rejec ted Hence B 2 Fif 10 a AM Receiver perheterodlyne receiver Bl......
Q:
NuLathe Company produces a turbo engine component for jet aircraft manufacturers. A standard cost system has been used for years with good results. Unfortunately, NuLathe has recently experienced...
A:
1 a Revising the standards immediately would facilitate their use in a master budget Use of revised......
Q:
Johnson sells $100,000 of product to Robbins, and also purchases $10,000 of advertising services from Robbins. The advertising services have a fair value of $8,000. How much revenue should Johnson...
A:
Particulars Amount Sale revenue......
Q:
Determine whether the following symbolized arguments are valid or invalid by constructing a truth table for each.
A:
Click to View...
Q:
Kim Bryan, a new staff auditor, is confused by the inconsistency of the three audit partners she has been assigned to on her first three audit engagements. On the first engagement, she spent a...
A:
a Factors which could explain the difference in the amount of evidence accumulated in different part......
Q:
For the first order system with transfer function: C(s) 2 R(s) 25+1 a) Find the time response for this system when the input to the system is unit step signal b) Draw this time response for range of...
A:
Click to View...
Q:
As the weekly senior management team meeting concluded, Roy Hoffman, president of Covington Meters (Covington) in Cincinnati, Ohio, summarized his frustration with the companys high levels of...
A:
Covington is facing the issue of inventory optimization with a high level of inventories shooting up the working capital and high lead time which can lead to stockout problems Demand forecasting is ve......
Q:
The following is the sales budget for Coore, Inc., for the first quarter of 2019. Credit sales are collected as follows:65 percent in the month of the sale20 percent in the month after the sale15...
A:
a The November sales must have been the total uncollected sales minus the uncoll......
Q:
The Doak Company has projected the following quarterly sales amounts for the coming year: a. Accounts receivable at the beginning of the year are $1,700. The company has a 45-day collection period....
A:
a 45 day collection period implies all receivables outstanding from previous quarter are collected i......
Q:
Let f be integrable on [-, ] and L R. a) Prove that if {N f)(x0) L as N and if (Sf)(x0) converges, then (SNf)(x0)) L. b) Prove that converges to 2 cos 2x uniformly on compact subsets of (0, 2)....
A:
a If Sf x 0 converges to M then by Remark 14 6 N f x 0 M as N i e M L......
Q:
Why can retail businesses not afford to ignore e-commerce?
A:
Retail businesses cannot afford to ignore e commerce for several important reasons Consumer Preferences Consumer behavior has shifted dramatically in......
Q:
Carla was the owner of vacant land that she was holding for investment. She paid $2 million for the land in 2013. Raymond was an investor in vacant land. He thought Carlas land might be the site of...
A:
Carla does not have a long term capital gain of 836 000 upon the expiration of the option An option......
Q:
Alice is a junior auditor on the audit team for Sonoma Safari Park Ltd (SSP). The same audit firm has been SSPs auditor for the past two years. During this time, the auditors have completed both the...
A:
Alice s suggestion is not appropriate for several reasons Audit Objectives and Risks The primary purpose of an audit is to provide an independent and......
Q:
Hilde purchased all of the rights to a patent on a new garden tool developed by a friend of hers who was an amateur inventor. The inventor had obtained the patent rights, set up a manufacturing...
A:
The nature of Hilde s gain from selling all of the patent rights to Garden Tool Company is capita......
Q:
At the end of 2016, Magenta Manufacturing Company discovered that construction cost had been capitalized as a cost of the factory building in 2011 when it should have been treated as a cost of...
A:
Correcting the misclassification of the property cost will have different consequences depending on the taxpayer s inventory method Let s analyze the......
Q:
In a multiple-channel system, what is the rationale for having customers wait in a single line, as is now being done in many banks and post offices, rather than multiple lines?
A:
The primary reasons to have customers wait in a single......
Q:
Let X be a random variable taking on values a1, a2, . . . , pr with probabilities p1, p2, . . . , pr and with E(X) = μ. Define the spread of X as follows: This, like the standard deviation, is a...
A:
Let X X be independent rando......
The New Accounts Payable Toolkit 1st Edition - ISBN: 1119700507 - Free Book