48
Cost Management Average cost per day: C. Plan 1:
$194.80 á 380 km = $0.51/km $49.95 x 1 day = $49.95 with unlimited mileage
Plan 2:
(1) $0.5 x 50 km = $ 25 (2) $0.5 x 100 km = $50 (3) $0.5 x 250 km = $125
Plan 3:
(1) $24.95 x 1 day + $0.25 x 50 km = $37.45 (2) $24.95 x 1 day + $0.25 x 100 km = $49.95 (3) $24.95 x 1 day + $0.25 x 250 km = $87.45
If she plans to drive 50 km, then she should choose Plan 2. If she plans to drive more than 99 km, then she should choose Plan 1.
2.26
Toyco
A. Direct labour appears to be a fixed cost; therefore, the cost function is TC = $95,000. B. There are no apparent outliers; all of the observations appear to be close to or on the same slope line:
Š 2012 John Wiley and Sons Canada, Ltd.