Laconic Company manufactures ultra sound equipment. Based on past experience, La

Question

Laconic Company manufactures ultra sound equipment. Based on past experience, Laconic has found that total annual repair and maintenance cost can be represented by the following formula: total annual repair and maintenance cost = $205,000 + $7.50x, where x = machine hours. Last year, Laconic incurred 145,000 machine hours.

Required: Enter all amounts as positive numbers.

A. What was the total repair and maintenance cost incurred by Laconic last year?
$1292500

B. What was the total fixed repair and maintenance cost incurred by Laconic last year?
$205000

C. What was the total variable repair and maintenance cost incurred by Laconic last year?
$

D. What was the repair and maintenance cost per machine hour last year? Round your answer to two decimal places.
$

E. What was the fixed repair and maintenance cost per machine hour last year? Round your answer to two decimal places.
$

F. What was the variable repair and maintenance cost per machine hour last year? Round your answer to two decimal places.
$

Explanation / Answer

Total Annual Repair & maintenance Costs = 205000+7.5X Machine Hours= 145000 A. Total Cost = 205000+7.5*145000 $1,292,500 B. Fixed Repair & Maintenance Cost = $ 205000 C. Total Variable Repair & Maintenance Cost = 7.5*145000 $1,087,500 D. Repair & Maintenance cost per hour = Total/ No of hours 1292500/145000 $ 8.91 per hour E. Fixed Repair & Maintenance cost per hour Total Cost/ Total Machine Hours 205000/145000 $ 1.41 per hour F. Variable Repair & Maintenance cost per hour = $ 7.5 per hour

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.