Friday
May 6, 2016

# Homework Help: Financial Management

Posted by Sandi on Monday, August 16, 2010 at 5:36pm.

I need to know how to find the fixed cost and the variable cost along with the break even point using this information.

During the sixth month of the fiscal year, the program director of the Westchester
Home-Delivered Meals (WHDM) program decides to again re-compute fixed costs,
variable costs, and the BEP using the high–low method. Here are the number of
meals served and the total costs of the program for each of the first six months:

Month Meals Served Total Costs
July 3,500 \$20,500
August 4,000 \$22,600
September 4,200 \$23,350
October 4,600 \$24,500
November4,700 \$25,000
December 4,900 \$26,000

Re-compute fixed costs, variable costs, and the BEP. What are the variable
costs? What are the fixed costs? How many meals will the WHDM program need
to provide during the fiscal year to reach the BEP? How much profit will the program
earn if it completes its 45,000-meal contract with the City of Westchester?