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General Accounting Discussions: Calculating The Variable Cost Per Unit (slope of of cost function)

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    • CommentAuthormettekat
    • CommentTimeFeb 17th 2011
     
    The Spartan Company makes free-standing cupboards for storage in dorm rooms that are made up of three different component parts: wood, hardware, and rollers for shelves. The company considers a relevant range of operations to be between 5,000 and 9,000 cupboards produced per month. Hardware (e.g., knobs, screws) comes in packages sufficient to make 9,000 cupboards. Per-unit costs of each component at two different activity levels are presented below. The cost of each of these components may be variable, fixed, or mixed. Use the high-low method to answer the following questions.

    5,000 units 7,500 units
    Wood $5.00 $5.00
    Hardware $7.50 $5.00
    Rollers $4.00 $3.00

    Mixed cost: Rollers
    Fixed cost: Hardware
    Variable cost: Wood

    QUESTION: Calculate the slope of the cost function for cupboards; that is, the variable cost per unit produced considering all its component parts

    --I thought it'd be 5, but it was marked wrong!
    • CommentAuthorSabrinaMo
    • CommentTimeJul 14th 2011
     
    Has anyone figured out how to do this?
    • CommentAuthorSabrinaMo
    • CommentTimeJul 14th 2011
     
    I need to know this and have it done by 10am tomorrow morning! Please help me. I'm willing to pay :)

    2. Calculate the slope of the cost function for cupboards; that is, the variable cost per unit produced considering all its component parts. (1 point)
    Incorrect. Tries 1/10

    3. Calculate the total fixed costs for cupboards in a month considering all its component parts. (1 point)
    Tries 0/10

    4. If Spartan produces 6,850 cupboards this month, the total cost would be: (1 point)
    • CommentAuthorshruti
    • CommentTimeJul 26th 2011
     
    hi, mail me on ehomeworksolution@yahoo.in i can help u.

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