9 .
Natural gas bill consisting of a fixed component , plus a constant variable cost per thousand cubic feet after a specified number of cubic feet are used
The vertical axes of the graphs represent total dollars of costs incurred , and the horizontal axes represent levels of cost driver activity during a particular time period .
Requirement 1 : Indicate by letter which graph best fits each of the situations described . The graphs may be used more than once . Next to each number-letter pair , identify a likely cost driver for that cost
P3-44 ( similar to )
Scott Wesley School , a private high school , is preparing a planned income statement for the coming academic year ending August 31 , 2013 . Tuition revenues for the past two years ending August 31 were as follows : 2012 , $ 810,000 ; and 2011 , $ 860,000 . Total expenses for 2012 were $ 800,000 and in 2011 were $ 817,500 . No tuition rate changes occurred in 2011 or 2012 , nor are any expected to occur in 2013 . Tuition revenue is expected to be $ 800,000 for 2013 .
Requirement 1 : What net income should be planned for 2013 , assuming that the implied cost behavior remains unchanged ?
Let ' s begin by determining the variable expense percentage .
E3-32 ( similar to )
The following list was prepared by the accounting supervisor for Huang Building Supply :