Variable costs, fixed costs, relevant range. gumball's manufactures jaw-breaker candies in a fully automated process. the machine that produces candies was purchased recently and can make 4,400 per month. the machine costs s9,500 and is depreciated using straight-line depreciation over 10 years assuming zero residual value. rent for the factory space and warehouse and other fixed manufacturing overhead costs total $1,300 per month. gumball's currently makes and sells 3,100 jaw-breakers per month. gumball's buys just enough materials each month to make the jaw-breakers it needs to sell. materials cost 10 cents per jawbreaker. next year dotball expects demand to increase by 100%. at this volume of materials purchased, it will get a 10% discount on price. rent and other fixed manufacturing overhead costs will remain the same. 1. what is gumball's current annual relevant range of output? 2. what is gumball's current annual fixed manufacturing cost within the relevant range? what is the annual variable manufacturing cost? 3. what will gumball's relevant range of output be next year? how, if at all, will total annual fixed and variable manufacturing costs change next year? assume that if it needs to dotball could buy an identical machine at the same cost as the one it already has.

The balance sheet contains the following major sections: current assets long-term investments property, plant, and equipment intangible assets other assets current liabilities long-term liabilities contributed capital retained earnings accumulated other comprehensive income required: the following is a list of accounts. using the letters a through j, indicate in which section of the balance sheet each of the accounts would be classified. if an account does not belong under one of the sections listed, select "not under any of the choices" from the classification drop down box. for all accounts, indicate if the account is a contra account or an account that would normally be deducted on the balance sheet by selecting "yes" from the second drop down box, otherwise select "no". account classification contra or deducted (yes/no) 1. cash 2. bonds payable (due in 8 years) 3. machinery 4. deficit 5. unexpired insurance 6. franchise (net) 7. fund to retire preferred stock 8. current portion of mortgage payable 9. accumulated depreciation 10. copyrights 11. investment in held-to-maturity bonds 12. allowance for doubtful accounts 13. notes receivable (due in 3 years) 14. property taxes payable 15. deferred taxes payable 16. additional paid-in capital on preferred stock 17. premium on bonds payable (due in 8 years) 18. work in process 19. common stock, $1 par 20. land 21. treasury stock (at cost) 22. unrealized increase in value of available-for-sale securities

Lavage rapide is a canadian company that owns and operates a large automatic car wash facility near montreal. the following table provides data concerning the company’s costs: fixed cost per month cost per car washed cleaning supplies $ 0.70 electricity $ 1,400 $ 0.07 maintenance $ 0.15 wages and salaries $ 4,900 $ 0.30 depreciation $ 8,300 rent $ 1,900 administrative expenses $ 1,400 $ 0.03 for example, electricity costs are $1,400 per month plus $0.07 per car washed. the company expects to wash 8,000 cars in august and to collect an average of $6.50 per car washed. the actual operating results for august appear below. lavage rapide income statement for the month ended august 31 actual cars washed 8,100 revenue $ 54,100 expenses: cleaning supplies 6,100 electricity 1,930 maintenance 1,440 wages and salaries 7,660 depreciation 8,300 rent 2,100 administrative expenses 1,540 total expense 29,070 net operating income $ 25,030 required: calculate the company's revenue and spending variances for august.

One of the benefits of a well designed ergonomic work environment is low operating costs is true or false