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8_murik_8 [283]
2 years ago
14

The Connors Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixe

d or variable. Connors Company has heard about a method of measuring cost functions called the highminuslow method and has decided to use it in this situation. Cost Hours $ 22 comma 000 5 comma 500 $ 26 comma 900 6 comma 250 $ 35 comma 000 7 comma 750 $ 40 comma 000 10 comma 300 $ 38 comma 600 9 comma 200 What is the cost​ function?
Business
1 answer:
Scilla [17]2 years ago
5 0

Answer:

The cost function is:  

Mixed cost =  3.75x + 1375

Explanation:

A mixed cost is a cost that contains an element of both the fixed and the variable cost in it. The variable element per unit in a mixed cost can be calculated using the high low method. The formula for variable cost per unit under the high low method is,

Variable cost per unit = ( Cost at highest activity level - Cost at lowest activity level)  /  ( units of highest activity level - units of lowest activity level)

The units of activity level here are <u>hours</u>. The highest activity level here is 10300 hours and the lowest activity level here is 5500 hours.

The variable cost per hour = (40000 - 22000)  /  (10300 - 5500)

Variable cost per hour = $3.75

The total fixed cost in this mixed cost =   22000  -  (3.75 * 5500)  = $1375

Thus the cost function is =   3.75x + 1375

Where x is the number of hours

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aleksandrvk [35]

"researchers usually start their investigation by examining some of the rich variety of low-cost and readily available <u>"secondary" </u>data, then collect <u>"primary"</u> data if the needed data don't existing or are dated, inaccurate, incomplete or unreliable."


Primary data will be data that you gather particularly with the end goal of your examination venture. An advantage of primary data is that it is particularly custom fitted to your examination needs. A weakness is that it is costly to acquire.  

Secondary data alludes to information which is gathered by somebody who is somebody other than the client. Regular sources of secondary data for sociology incorporate censuses, data gathered by government divisions, hierarchical records and information that was initially gathered for other research purposes.

8 0
2 years ago
You are considering two independent projects. Project A has an initial cost of $125,000 and cash inflows of $46,000, $79,000, an
Harrizon [31]

Answer:

b. Accept Project A and reject Project B.

Explanation:

To verify project viability at a required return rate of 16%, simply calculate the project's net present value at a rate of 16%. If the NPV is positive, then the project should be accepted, otherwise it should be rejected.

Project A:

NPV = -\$125,000 +\frac{\$46,000}{(1+0.16)} +\frac{\$79,000}{(1+0.16)^2} +\frac{\$51,000}{(1+0.16)^3}\\NPV =\$6,038.58

Project A should be accepted.

Project B:

NPV = -\$135,000 +\frac{\$50,000}{(1+0.16)} +\frac{\$30,000}{(1+0.16)^2} +\frac{\$100,000}{(1+0.16)^3}\\NPV =-\$5,535.89

Project B should be rejected.

6 0
2 years ago
You are the manager of a midsized company that assembles personal computers. You purchase most components—such as random access
lapo4ka [179]

Since the company is a mid sized company, with the increase in the price of the inputs of the RAM, the price of the RAM will definitely increase.

<u>Explanation:</u>

1) Since the price of the inputs of a particular good are one of the most important factors which determine the price of the goods, so with the increase in the inputs of the price of the inputs of the good, the price of the good will increase.

2) With the fall in the income of the consumer, the expenditure of the consumer will also decrease. So the demand of the RAM will fall because of two reasons a) increase in the price of RAM and 2) with the fall in the income of the consumer.

6 0
2 years ago
Which of the following statements is correct? Review Later Strategic buyers are asset managers that are trying to time the purch
kicyunya [14]

Answer:

Strategic buyers are asset managers that are trying to time the purchase or sale of a business.

Financial buyers are institutions that provide capital and are not operators.

Explanation:

Strategic buyers are the buyers which aim to buy the company through acquisition, or M&A in order to gain more power in the industry, basically expanding their horizons, they are competitors, or the suppliers in the supply chain, or the customers of the product, they tend to buy such companies in order to decrease their share of cost.

Financial buyers are the one which basically provides finance to the company.

In simple terms these buyers just invest in the companies and have short term or long term goals from this investment, as long as these goals in the form of expected return are fulfilled they keep the investment, as soon when they discover its profitable to sell it further and have a capital gain they do so.

6 0
2 years ago
Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when
Lera25 [3.4K]

Answer:

Total variable cost if 4 units were produced

= $33.75 x 4 units = $135

Total fixed cost = Total cost - Total variable cost

Total fixed cost = $175 -$135

Total fixed cost = $40

Average fixed cost = Total fixed cost/No of units

Average fixed cost = $40/10 units

Average fixed cost = $4

The correct answer is B

Explanation:

In this case, we need to calculate the total variable cost on the ground that 4 units were produced. Then, we will determine the total fixed cost by deducting the total variable cost from total cost. Finally, we will divide the total fixed cost by 10 units in order to obtain the average fixed cost.

6 0
2 years ago
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