e question Bonita Industries used high-low data from June and July to determine its variable cost...

Question

Question

Answer 1

Answer #1

$30,300

Given data

Month Units Cost

June 1500 $27000

July 700 $15000

August 1800

Total cost = (units * variable cost) + fixed cost

Insert June data in it i.e,

27000 = (1500 * 11) + fixed cost

27000 = 16500 + fixed cost

fixed cost = $10,500 (i.e, 27000 - 16500)

Now for 1800 units in august

= (1800 * 11) + 10500

= 19800 + 10500

= $30,300

Answer 2

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