ACC 560 Week 4 Chapter 5: Exercises 6, 9, and 13; Problem 2; Chapter 6: Exercises 2, 7, and 12;
E5-6
PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,000 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $ 300 and $ 200, respectively.
Instructions A. Identify the above costs as variable, fixed, or mixed. B. Calculate the expected costs when production is 5,000 units.
E5-9
The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $ 60 a night. Operating costs are as follows.
Salaries $ 5,900 per month FIXED COST Utilities $ 1,100 per month FIXED COST Depreciation $ 1,000 per month Maintenance $ 100 per month
FIXED COST
FIXED COST Maid service $ 14 per room VARIABLE Other costs $ 28 per room VARIABLE
Instructions: Determine the inn ' s break-even point in