Required information EX 6-30 (Static) High-Low Method; Tour Company (LO 6-1, 6-2, 6-5) [The following information applies to the questions displayed below.] Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season. [The real is Brazil's national monetary unit. On the day this exercise was written, the real was equivalent in value to 0.2545 U.S. dollar.] Month November December January February March April Miles Traveled by Tour Buses 8,500 10,600 12,700 15,000 20,000 8,000 Cost 11,400 real 11,600 11,700 12,000 12,500 11,000 EX 6-30 (Static) Part 1: Rio Bus Tours has incurred the following bus maintenance costs...
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- Use the high-low method to estimate the variable cost per tour mile traveled and the fixed cost per month.
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Develop a formula to express the cost behavior exhibited by the company’s maintenance cost.
Round "Variable cost per tour mile" to 3 decimal places.
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- ok at ances Bilboa Freightlines, S.A. of Panama has a small truck that it uses for local deliveries. The truck is in bad repair and must be either overhauled or replaced with a new truck. The company has assembled the following information (Panama uses the U.S. dollar as its currency): Purchase cost new Remaining book value Overhaul needed now i Annual cash operating costs Salvage value now Salvage value eight years from now Present Truck $ 34,000 19,000 7,000 Purchase the new truck Keep the old truck 10,000 12,000 2,000 Present Value of Net Cash Flows New Truck $46,000 If the company keeps and overhauls its present delivery truck, then the truck will be usable for eight more years. If a new truck is purchased, it will be used for eight years, after which it will be traded in on another truck. The new truck would be diesel-fuelled. resulting in a substantial reduction in annual operating costs, as shown above. The company computes depreciation on a straight-line basis. All investment…* is a UK based company which has the Following Us$ transactio O ne month : Expected receipt of $240 00. One month : Expected payment of 140000. 3 months : Epected receipts of $300 000, The finanle manager has cOllected the following information: Spot rate C $per E):# 1:782010.0002 One month forw ard rate (4 per £): 1.7829$0.0003. 3 months forward rate ($ per £):1:7846 ± o.0004 Borrowing 4.9°10 Deposit Moneyrates For x : One year sterling interest rate One year dollar interest rate Calculate the erpected sterting receipts in Imonth and in1. Based on the following information, answer the problems showing procedure for each problem. CURRENCY SPOT & FORWARD RATES TABLE_1 U.S./Can. $1 U.S. $1 Cdn Cdn.$ U.S. $ in in Country per unit per unit Cdn.$= U.S.$= 1.5833 0.6316 SPOT 1 month forward 1.5847 2 months forward 1.5861 3months forward 1.5879 6months forward 1.5932 12months forward 1.6041 3years forward 1.6328 5years forward 1.6538| 7years forward 1.6738 10years forward 1.7133 Britain 1 m forward 2 m forward 3 m forward 6 m forward 12 m forward Europe 1 m forward 3 m forward 6 m forward 12 m forward Japan (pound) 2.4582 2.4559 2.454 2.4525 2.4474 2.4392 1.5504 1.5497 1.549 1.5489 1.5506 (Yen) 0.013034 0.008232 1 m forward 0.013066 0.008245 1.5526 1.5498 1.5472 1.5445 1.5362 1.5206 0.9792 0.9779 0.9755 0.9722 0.9666 0.631 0.6305 0.6298 0.6277 0.6234 0.6124 0.6047 0.5974 0.5837 (euro) Cdn.$ in 2001: High 1.5028 Low 1.6183 Average 1.5701 0.6654 0.6179 0.6369 3 m forward 0.013131 0.00827 6 m forward 0.013231 0.008305 12 m…
- Assume that a Hong Kong tourist agency approached the president of the airline about flying chartered tourist flights from Manila to Hong Kong. The tourist agency has offered the airline P180,000 per round-trip flight on a jumbo jet. Given the airline's usual occupancy rate and airfares, a round-trip jumbo jet generates revenue of P270,000. Sales Revenues: P270,000 Passenger Cargo 40,000 P310,000 Variable Costs 120,000 100,000 Fixed Costs 220,000 Net Income 90,000 If the offer is accepted, the company will not incur reservations and ticketing costs estimated to be P10,000. There is also excess capacity to cater to the additional flights of the special offer. 3. Determine the relevant/differential costs. 4. Should the offer be accepted?A telecommunications company contracted for the installation of a fiber optic cable linking two major cities will cost of $960M. This amount includes freight and installation charges estimated at 10% of the above contract price. If the cable shall be depreciated over a period of 15 years with zero salvage value, what is the depreciation charge during the 8th year using the SOYD method? A. $41.28M B. $86M C. NOTA D. $64MA bookstore sells a particular book for ₱350. Variable expenses are ₱180 per book. Currently, the bookstore is just breaking even at 5,000 books per year. The annual fixed expenses would be? a. ₱350,000 b. ₱530,000 c. ₱180,000 d. ₱850,000 e. Cannot be determined
- genow.com/ilm/takeAssignment/takeAssignmentMain.do?inprogress-true stom Order ♥ e < eBook costs. Gilroy Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,200. The freight and installation costs for the equipment are $650. If purchased, annual repairs and maintenance are estimated to be $430 per year over the 4-year useful life of the equipment. Alternatively, Gilroy can lease the equipment from a domestic supplier for $1,580 per year for 4 years, with no additional Unit costs: Purchase price Freight and installation Repair and maintenance (4 years) Lease (4 years) Prepare a differential analysis dated December 11 to determine whether Gilroy should Lease Equipment (Alternative 1) or Buy Equipment (Alternative 2). Hint: This is a lease-or-buy decision, which must be analyzed from the perspective of the equipment user, as opposed to the equipment owner. If an amount is zero, enter "0". For those boxes in which you must enter…EFF Te A shipper has the following cargo and associated freight costs: 8 x 40-ft containers said to contain computers and computer accessories. Invoice value of the goods: CAD $200,000.00 Ocean freight Montréal-Hamburg per container: US $750.00 Pre-carriage Toronto to Montreal all in, per container: CAD $200.00 All risk marine premium rate: 0.45% Exchange rate: US $1.00 = CAD $1.10 Based on the information provided, what is the 110% CIP value? Select one answer. CAD $208,200.00 CAD $230,050.59 CAD $230,492.57 CAD $230,604.60 A shEB12. 2.3 Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the bus 7,000 miles and paid a total of $1,360 in June. In October, Able Transport paid $1,280 for the 5,000 miles driven. If Able Transport uses the high-low method to analyze costs, how much would Able Transport pay in December, if they drove 6,000 miles?
- The following pair of assets differ only in the MARR. The problem asks you to determine the effect of this difference on the economic life and to explain the result. All assets decline in value by 20 percent of current value each year. Installation costs are zero for all assets. Further data concerning the four pairs of assets are given in the table that follows. Asset First Cost A B $130,000 $130,000 Initial Operating Cost $35,000 $35,000 Rate of Operating Cost Increase 11.5%/year 11.5%/year MARR 5% 25%Assume Intervale Railway is considering hiring a reservations agency to handle passenger reservations. The agency would charge a flat fee of $13,000 per month, plus $3 per passenger reservation. What is the total reservation cost if 200,000 passengers take the trip next month? a. $613,000 b. $3.07 c. $600,000 d. $13,000.noitudifaib Isimbnid eri to abitan9106 2169 Of Ixen ert to A vitose ni oni lliw ito ten other video Task 1: tam A U.S.-based company imports furniture from Germany. In accordance with the contract, the U.S. company will have to pay €8,000,000 for a shipment of furniture in 30 days. Information about the spot and forward rates is given below: Current spot rate EUR/USD 0.800 EUR/USD 0.799 30-day forward rate 1. Describe the risk that the U.S. company is exposed to. (1 USD costs 0.8 EUR) AlesT it muminim en 169 Isait ati to 19hsup dhuot erit ni mit is not sure 29mu6 1900sm erT .000,000, Are ai etsmitee mumixem erit bris 000,000,r3 ai eunevet 29lsa to stsmitee .betudinteib ylmotinu ens elsa erlt terit 19hsup rihuot erlt not euneven 2elsa to eulsv betoqxe erit animated 2. Explain how the U.S. company can hedge the risk by using the forward contract. q ert bri