1.Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000 then their profit increases/decreases by how much?
Sales $50,000
Variable Costs $7,500
Fixed Costs $27,000
Your Answer:
2.Susan is trying to decide whether or not to attend college during the next 12-week session. She has the following options:
1. Attend college full-time at a cost of $1,200.
2. Attend college part-time at a cost of $700 and work part-time earning $1,700.
3. Work full-time earning $5,000.
What is Susan's incremental profit if she chooses option 3 over option 2?
3.Total costs were $72,300 when 27,000 units were produced and $94,000 when 35,000 units were produced. Use the high-low method to find the estimated total costs for a production level of 32,000 units.