Question & Answer: If the level of activity(X) increases, within the relevant range of activity (i.e. class pizza example): a. Variable cost…..

ー15. Ifthe level ofactivity(X) increases, within the relevant rage of activity class pura cumpkk a Variable cost per unit will increase b. Total fixed costs will increase c. Total costs will actually decrease d. Fixed cost per unit will increase e. Total variable costs will increase 16 Sclect the term from the numerical list provided that best matches cach of the following descriptions Note: If six or more (of the ten) matches is correct, Ipt credit) is earned List # List of terms A cest that remains constant in total when tetall velume changes he factor that causes (or drives) changes in costs D. A cest that changes in total in direct preportien to changes in Cont strctere E. The way a cost reacts (changes) relative to changes inあmeasure of | 焦Fiud cest activity F. A condition in which a percentage change in reveeee will produce Heble-mcthod larger percentape change in et income or loss G. A method of estimating the fixed and variable compnents of are plotted on a graph and a line is visually mixed cost where data fit to the data H. The difference between acompany sales revenue and its variablOperaing everge s cost mis or relative preprtion of variable and cests to total costs 1. Variable cest A method of estimating the fixed and variable components of mised cost using two data ebservations -17. Hitcs & Barned, Inc. produces finc hats for fashion-conscious students. In 2016, its highest and lowest production levels occurred in May and November, respectively. In May, it produced 6000 units at a total cost of $120,000. In November, it produced 3,500 units at a total cost of $90,000 Using the high low method of estimating costs, the averape variable cost of prodacing a wallet would be a. $12.00 b, $25.71 e, $34.29 d $46,80 c、 $7200 18. Based upon the high-low analysis above, and after determining the expected fixed cost associated with this fact pattern, the cost formula (expressed as Y-A+ b) to be used would be show all work below Tetal Cest (Y) 19. Using your cost formula determined above, what would the total expected cost be if company management plans to prodace 5,100 units next mooth? Show your work and circle your answer Tetal Cest ()-

If the level of activity(X) increases, within the relevant range of activity (i.e. class pizza example): a. Variable cost per unit will increase b. Total fixed costs will increase c. Total costs will actually decrease d. Fixed cost per unit will increase e. Total variable costs will increase Select the term from the numerical list provided that best matches each of the following descriptions. Use the following information to answer question 17 through 19: Hites & Barned, Inc. produces fine hats for fashion-conscious students. In 2016, its highest and lowest production levels occurred in May and November, respectively. In May, is produced 6,000 units at a total cost of $120, 000. In November, it produced 3,500 units at a total cost of $90,000. Using the high/low method of estimating costs, the average variable cost of producing a wallet would be: a. $12.00 b. $25.71 c. $34.29 d. $46.80 c. $72.00 Based upon the high-low analysis above, and after determining the expected fixed cost associated with this fact pattern, the cost formula (expressed as Y = A + bX) to be used would be (show all work below): Total Cost(Y) = Using your cost formula determined above, what would the total expected cost be if company management plans to produce 5,100 units next month? Show your work and circle your answer. Total Cost (Y) =

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