# Fixed and Variable Costs

A. STONES Company accumulates the following data concerning a mixed cost, using miles as the activity level.

Miles Driven Total Cost Miles Driven Total Cost

January 8,000 $ 15,850 March 8,500 $ 16,800

February 7,500 14,900 April 8,200 16,230

Compute the fixed and variable cost elements using the high-low method.

Variable cost (include two digits after the decimal) $

Fixed cost $

B. For NA's Company, variable costs are 70% of sales, and fixed costs are $180,000. Management's net income goal is $96,000. Compute the required sales needed to achieve management's target net income of $96,000. (Use the mathematical equation approach.)

Sales= $

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Accounting

A. STONES Company accumulates the following data concerning a mixed cost, using miles as the activity level.

Miles Driven Total Cost Miles Driven Total Cost

January 8,000 $ 15,850 March 8,500 $ 16,800

February 7,500 ...

#### Solution Summary

This solution is comprised of a detailed explanation and calculation to find the fixed and variable cost elements using the high-low method and the required sales needed to achieve management's target net income of $96,000 using the mathematical equation approach.