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Fixed and Variable Costs

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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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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.

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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 ...

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