Question

In: Accounting

Deidoro Company has provided the following data for maintenance cost: Prior Year Current Year Machine hours...

Deidoro Company has provided the following data for maintenance cost:

	Prior Year		Current Year
Machine hours		22,000		24,500
Maintenance cost	$	31,400	$	34,900

Maintenance cost is a mixed cost with variable and fixed components. The fixed and variable components of maintenance cost are closest to:

Multiple Choice

$34,300 per year; $.714 per machine hour

$600 per year; $.714 per machine hour

$600 per year; $1.400 per machine hour

$31,400 per year; $1.400 per machine hour

.

Derst Inc. sells a particular textbook for $38. Variable expenses are $30 per book. At the current volume of 59,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:

Multiple Choice

$472,000

$2,242,000

$2,714,000

$1,770,000

Expert Solution

ekkarill92 answered 1 year ago

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