Compute the fixed and variable cost elements


Question 1: STONES Company accumulates the following data concerning a mixed cost, using miles as the activity level.

Miles Driven Total Cost Miles Driven Total Cost
January 8,000 $ 15,850 March 8,500 $ 16,800
February 7,500 14,900 April 8,200 16,230

Compute the fixed and variable cost elements using the high-low method.

Variable cost (include two digits after the decimal) $
Fixed cost $

Question 2: For NA's Company, variable costs are 70% of sales, and fixed costs are $180,000. Management's net income goal is $96,000. Compute the required sales needed to achieve management's target net income of $96,000. (Use the mathematical equation approach.)

Sales= $

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Compute the fixed and variable cost elements
Reference No:- TGS01934517

Now Priced at $25 (50% Discount)

Recommended (95%)

Rated (4.7/5)