Question

PROBLEM 1 Use the following information to answer questions a. and . A company provides the following information about the total amount of a mixed cost for each month along with the number of units produced in each month. Month Cost Units produced January $580,000 50,000 February $660,000 60,000 March $550,000 45,000 April $720,000 65,000 May $540,000 46,000 a. Using the high-low method of cost estimation, what is the variable cost per unit? b. Using the high-low method of cost estimation, what is the fixed cost in total?

Answer 1

Ca) Variable ces t Pen uit ange in Total Cost Hi& Minus los Ay evel Hijhast Autfvity lawe Auivity levet Lowest 45,000 unis 5,50, 000 $7,20,000- 65, e00 Variable cest 8.5 urut pan Unik Total Cest at high luel- Vasiable est at luj h leuel (b) fived Cest 65, 060 Uniks Hyh Leuel 10 6 s000) 7,20,000 $7,20, 000 - 167,500 do, Hope uliked dont forget to auswel & yeu Thumb's Up. give

Don't forget to give a Thumb's up.??