Question

On December 31, 2013, a company issues bonds with a par value of $600,000. The bonds mature in 10 years, and pay 6% annual interest, payable each June 30 and December 31. The bonds sold at $592,000. The company uses the straight-line method of amortizing bond discounts. The company's year-end is December 31. What is total bond interest expense over the 10 year life of the bond?

Answer 1

Bethany Link delivers parts for several local auto parts stores. She charges clients $1.65 per mile driven. She has determined that if she drives 2,400 miles in a month, her average operating cost is $.45 per mile. If Bethany drives 2,800 miles in a month, her average operating cost is $.40 per mile.

Required:
1.
Using the high-low method, determine Bethany’s variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal places.)

variable cost per unit
fixed cost