Citrus, Inc. used the high-low method to estimate that its fixed costs are $180,000. At its...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Citrus, Inc. used the high-low method to estimate that its fixed costs are $180,000. At its low level of activity, 100,000 units, average cost was $2.60 per unit. What would Citrus predict its average cost per unit to be when production is 100,000 units? Multiple Choice $1.80 $2.60 $2.60 $2.60 Citrus, Inc. used the high-low method to estimate that its fixed costs are $180,000. At its low level of activity, 100,000 units, average cost was $2.60 per unit. What would Citrus predict its average cost per unit to be when production is 100,000 units? Multiple Choice $1.80 $2.60 $2.60 $2.60
Expert Answer:
Answer rating: 100% (QA)
Step 1 Calculate Total costs Total costs No of units ... View the full answer
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
Posted Date:
Students also viewed these accounting questions
-
Georgia bleadown company uses the high low method to analyze production costs. The following information related to the production data for the first six months of the year. What is the estimated...
-
Explain how to use the high/ low method to estimate costs and/ or revenues.
-
A company makes travel umbrellas. Its fixed costs are $1000 a week and its variable costs for one batch of umbrellas are $500 for every 2000 units. The company ships 10,000 units a week. What is the...
-
Estimates have been presented to Holly Farms, which is considering two environmental chambers for a project that will detail laboratory confirmations of on-line bacteria tests in chicken meat for the...
-
State University has increased its tuition for in-state and out-of-state students in each of the past 5 years to offset cuts in its budget allocation from the state legislature. The university...
-
East Coast Digital (ECD) produces high-quality audio and video equipment. One of the companys most popular products is a high-definition personal video recorder (PVR) for use with digital television...
-
The following data were taken from the financial statements of The Amphlett Corporation, which is all equity financed. Required: 1. Calculate the following ratios for 2016 and 2017: a. Return on...
-
The Salinas Corporation has gathered the following data on its copy machine costs for the first eight months of the year. Required a. Prepare a scattergraph of the cost information and then choose a...
-
In an environment in which demand is both substantial and stable, _ _ _ _ _ technology tends to be the best choice. project production batch production flexible automation programmable automation...
-
Dry methane is supplied by a compressor and precooling system to the cooler of a Linde liquid-methane system (Fig. 9.6) at 180 bar and 300 K. The low-pressure methane leaves the cooler at a...
-
Blaine Kitchenware Inc. (BKI) was a mid-sized appliance producer that sold most of its products for residential kitchen use. It got its start as Blaine Electrical Apparatus Company in 1927. By 2006...
-
A machine produces soap bars with a weight of \(80 \pm\) \(0.10 \mathrm{~g}\). If the weight of the soap bars manufactured by the machine may be looked upon as a random variable having normal...
-
Verify that (a) the exponential density \(0.3 e^{-0.3 x}, x>0\) corresponds to the distribution function \(F(x)=\) \(1-e^{-0.3 x}, x>0\) (b) the solution of \(u=F(x)\) is given by \(x=\) \([-\ln...
-
A conducting loop having radius \(20 \mathrm{~cm}\) is held fixed, and there is a magnetic flux of \(0.6 \mathrm{~T} . \mathrm{m}^{2}\) through the loop. When the magnetic field is turned off, the...
-
To measure the magnitude of Earth's magnetic field \(B_{E}\), you use a single conducting coil with an area \(A=10 \mathrm{~cm}^{2}\) rotating at an angular speed \(\omega\), and measure the peak emf...
-
Estimate the amount of magnetic potential energy stored in a \(1.50 \mathrm{H}\) inductor when the current through it is \(3.0 \mathrm{~A}\).
-
Nike's goal to increase sales of its running shoes by 25 percent during the first six months of the new fiscal year is an example of a a. target market strategy b. positioning objective c. marketing...
-
Prairie Outfitters, Inc., a retailer, accepts paymnent through credit cards. During August, credit card sales amounted to $12,000. The processor charges a 3% fee. Assuming that the credit card...
-
Beginning in the 1990s, as China emerged as a major exporter, the prices of many goods fell. For example, clothing prices fell through 2007 when they bottomed out. But as Chinas labor costs started...
-
The law firm of Taub & Lawson, LLP, currently has four cases in process. Following is information related to those cases as of the end of March 2010: Taub & Lawson allocates overhead to cases based...
-
1. Producing inventory that is not needed relative to current sales demand to increase reported operating profits 2. Avoiding the adoption of innovative production and inventory management methods...
-
Use the comparative statements from Application Problem 17-1 to complete this problem. Instructions: 1. Based on CyberOptic's comparative financial statements prepared in Application Problem 17-1 and...
-
Use the comparative balance sheet from Application Problem 17-1 to complete this problem. Instructions: 1. Based on CyberOptics comparative balance sheet prepared in Application Problem 17-1,...
-
Use the comparative statements from Application Problem 17-1 to complete this problem. Instructions: 1. Based on CyberOptics comparative financial statements prepared in Application Problem 17-1 and...
Study smarter with the SolutionInn App