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Flauer [41]
2 years ago
3

Extron, Inc., has only variable costs and fixed costs. A review of the company's records disclosed that when 100,000 units were

produced, fixed manufacturing costs amounted to $200,000 and the cost per unit manufactured totaled $5. On the basis of this information, how much cost would the firm anticipate at an activity level of 97,000 units?
Business
1 answer:
monitta2 years ago
6 0

Answer:

$491,000

Explanation:

If the total cost per unit was $5 at an activity level of 97,000 units and fixed costs are $200,000, the variable cost per unit is given by:

VCU=\frac{\$5*100,000-\$200,000}{100,000}\\ VCU=\$3 / unit

When producing 97,000 units, each unit will cost $3 and there will be a fixed cost of $200,000. Total anticipated cost would be:

C = \$3*97,000+\$200,000\\C=\$491,000

Extron, Inc. would anticipate a cost of $491,000.

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Iteru [2.4K]

Answer:

a. 2 years

b. 1 year

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Explanation:

Interest period is the duration of the deposit. It is the length of time the money would remain in deposit. This is 2 years according to the question

Compounding period = number of times interest would be paid. In the question, this is a year. So interest would be paid every year

The compounding frequency - it is the number of times the deposit would be compounded. It is 12 months

The future value of the deposit can be determined using this formula :  

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FV = Future value  

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R = interest rate  

N = number of years

m = number of compounding  

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The clientele of black &amp; company's audit practice consists primarily of privately-owned small and middle market companies. r
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