Metro Transit operates a fleet of city buses. In January, bu…
Metro Transit operates a fleet of city buses. In January, buses were driven 14,000 kilometres and maintenance costs totaled $37,000. In February, buses were driven 36,000 kilometres and costs were $47,000. In March, activity was 51,000 kilometres with costs of $56,000. In April, buses were driven 66,000 kilometres at a cost of $64,500. What is the variable cost per kilometre using the high–low method?
Read DetailsSummit Bicycles manufactures and sells e-bikes. The company…
Summit Bicycles manufactures and sells e-bikes. The company expects annual sales revenue of $910,000, with each bike selling for $1,300. Each unit requires direct materials of $420, direct labour of $180, and variable manufacturing overhead of $160. In addition, Summit incurs $40 of variable selling expenses per unit. Beyond these variable costs, the company reports $200,000 of manufacturing overhead that does not vary with production and $110,000 of selling and administrative expenses that are also not variable. Management is analyzing its contribution margin ratio, break-even sales, and margin of safety. What are Summit’s break-even sales in dollars?
Read DetailsMetro Transit operates a fleet of city buses. In January, bu…
Metro Transit operates a fleet of city buses. In January, buses were driven 14,000 kilometres and maintenance costs totaled $37,000. In February, buses were driven 36,000 kilometres and costs were $47,000. In March, activity was 51,000 kilometres with costs of $56,000. In April, buses were driven 66,000 kilometres at a cost of $64,500. Estimate the total maintenance cost if 45,000 kilometres are driven.
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