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Exercise 2-16A Estimating fixed and variable costs using the high-low method LO 2-6 Walton Boat Company makes inexpensive alu

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Answer #1
units Cost
High 209 160,360
low 31 50,000
Difference 178 110,360
Variable cost per unit= 110360/178
620
Fixed cost = 160360-209*620
30780
Total estimated cost= 160*620+30780
129980
a. Fixed cost 30780
b. Total estimated cost 129980
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