Question

please complete the entire question, try and use the same format if possible

The following data have been extracted from the records of Puzzle Inc.: February 10,400 $27,640 August 23,920 Production level, in units Variable costs Fixed costs Mixed costs Total costs 31,500 25,996 $84,536 $146,593 Required: a. Calculate the missing costs. b. Calculate the cost formula for mixed cost using the high-low method. c. Calculate the total cost that would be incurred for the production of 14,560 units d. Identify the two key cost behavior assumptions made in the calculation of your answer to part c. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Calculate the missing costs. Do not round Intermediate calculations.

Answer 1

Within relevant range, the variable cost per unit remains constant and total fixed cost remains constant
	Feb	Aug
Production Level	10,400	23,920
Variable costs	27,040	62,192
Fixed costs	31,500	31,500
Mixed Costs	25,996	52,901
Total Costs	84,536	146,593
2.As per high low method, variable cost per unit = Difference in Cost/Difference in units
1.990014793	per unit
i.e. $1.99 per unit
Fixed cost	5,300.00
Cost formula = 5300+1.99 per unit
c.Total cost	103,630.40
Pattern is normal and relevant range is upto 23,920 units