Graded Homework

The ABC Company estimates that its total cost to send out invoices, receive payments, deposit payments, and update the accounting records was

$70.00

per sales invoice in 2016. In 2016, there were

700,000

sales invoices and total fixed costs of

$1,000,000 relating to these invoices.

a.)

What was the total cost and total cost per invoice in 2017?

in 2017, the company expects total fixed costs and variable costs per unit to remain the same as in 2016.

b.)

If the company budgets

500,000

sales invoices in 2017, what will be the expected total cost and expected cost per unit for 2017?

(Round your answer to 2 decimal places)

A company estimates that its total cost to acquire materials, setup machines, and produce products is

$150.00 per unit produced in 2016.

In 2016, there w

100,000

units produced and variable cost per unit produced totaled

$75.00

In 2017, the company expects total fixed costes and variable costs per unit to be the same as in 2016.

If the company budgets to produc

125,000

units in 2017, what are the expected total cost and expected cost per unit for 2017?

Year

Total Net Sales

Total Operating Costs

2015

$

21,000

$

16,000

2016

$

22,000

$

16,400

IN 2017, total net sales are budgeted to be

$

24,000

. Using the high-low method, prepare an estimate of total operating costs for 2017, assuming total