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: