The production of these units is near full capacity at waterways, so to accept the offer from the canadian company would require temporarily adding another shift to its production lineto do this would increase variable manufacturing costs by $030 per unit. For example, if the fixed costs per unit is $010 and the variable cost per unit is $040 (for a $050 total cost per unit), then 80 percent of the unit cost is variable cost ($ / $ = as an outside investor, you can use this information to predict potential profit risk. Waterways continuing problem 1 waterways continuing problem wcp1 waterways corporation is a private corporation formed for the purpose of providing the products and the services needed to irrigate farms, parks, commercial projects, and private homes.
Managerial accounting waterways continuing problem 25: wcp25 (this is a continuation of the waterways problem from chapters 19 through 24) waterways corporation uses very stringent standard costs in evaluating its manufacturing efficiency. Fixed cost vs variable cost fixed costs and variable costs both contribute to providing a clear picture of your overall cost structure understanding the components clearly in terms of which costs are set and which costs are incremental provides a great deal of insight into your business and can impact seemingly unrelated concepts like sales. Waterways continuing problem wcp1 waterways corporation is a private corporation formed for the purpose of pro-viding the products and the services needed to irrigate farms, parks, commercial projects, and private homes.
Related terms: variable cost, total cost, fixed expenses variable cost: all other costs that are some function of activity they are usually cost estimation should take place in an integrated, problem solving framework once the overview of cost definitions and methodologies by james ruth. Income will increase by $ waterways continuing problem 19 (part level submission) waterways is thinking of massproducing one of its specialorder sprinklers to do so would increase variable costs for all sprinklers by an average of $070 per unit. You can calculate the variable costs by adding the cost of materials used, the amount spent on buying parts and the wages paid out over a typical period you divide the total by the number of. To do so would increase variable costs for all sprinklers by an average of $070 per unit the company also estimates that this change could increase the overall number of sprinklers sold by 10%, and the average sales price would increase $020 per unit.
In economics, variable cost and fixed cost are the two main costs a company has when producing goods and services a company's total cost is composed of its total fixed costs and its total. To do so would increase variable costs for all sprinklers by an average of $070 per unit waterways continuing problem 1 and 6-wcp1 waterways corporation is a private corporation formed for question waterways continuing problem 1 waterways continuing problem wcp1waterways corporation is a private corporation formed for the purpose. The manufacturing costs are $6,864,512 variable and $2,050,140 fixed selling and administrative costs are $2,651,657 variable and $794,950 fixed 1)if waterways begins mass producing its special order sprinklers, how would this affect the company.
The problem w/ allocating fixed costs to rates based on meter size certain accounts use more water it requires low-water-use customers to pay fixed costs for water they have the theoretical potential to use, but do not have the fixed costs + variable costs fixed costs + variable costs total cost= total cost += fixed fees truly are fixed. Managerial accounting waterways continuing problem 22: wcp22 vice president for sales and marketing sam totter is trying to plan for the coming year in terms of production needs to meet the sales demand. Thereafter, because the marginal cost of production exceeds the previous average, so average cost rises (for example the marginal cost of each extra unit between 450 and 500 is 48 and this increase in output has the effect of raising the cost per unit from 18 to 21.
Variable cost in the form of an opportunity cost as mentioned above, ie, the cost today is the benefit obtained by using water tomorrow the reduced electricity conversion efficiency due to a reduced height the water falls as the. One way to reduce variable costs is by finding a lower-cost supplier for your company's product other examples of variable costs are most labor costs, sales commissions, delivery charges, shipping charges, salaries, and wages. B) waterways is thinking of mass-producing one of its special-order sprinklers to do so would increase variable costs for all sprinklers by an average of $070 per unit. Variable costs are typically lowered by reducing material or labour costs, for example, a builder sourcing lumber from a lower-cost supplier or taking advantage of equipment and/or technology to automate production.