Answer the Following Questions Using the Information Below:
Presented Below

question 158

Multiple Choice

Answer the following questions using the information below:
Presented below are the production data for the first six months of the year for the mixed costs incurred by Benalla Company.
$$\begin{array} { l r r } \text { Month } & \text { Cost } & \text { Units } \\\text { January } & \$ 4890 & 4100 \\\text { February } & 4024 & 3200 \\\text { March } & 6480 & 5300 \\\text { April } & 8840 & 7500 \\\text { May } & 5800 & 4800 \\\text { June } & 7336 & 6600\end{array}$$ Benalla Company uses the 'high-low method' to analyse mixed costs.
-What is the estimated total cost at an operating level of 5000 units?

• A)$6227.20
• B)$6040.00
• C)$8510.00
• D)$4283.20

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Definitions:

Plowback Ratio

The proportion of earnings retained by a business, rather than distributed to its shareholders as dividends, to reinvest in the core business or to pay debt.

Dividend Policy Decision

The strategy that a company uses to determine the size and timing of its dividends payments to shareholders.

Capital Intensity Ratio

A financial metric that measures the amount of capital needed per dollar of revenue; used to evaluate the investment intensity of a business's operations.

Fixed Asset Turnover Ratio

A financial metric that measures how efficiently a company uses its fixed assets to generate sales, calculated by dividing net sales by average fixed assets.