Answer 11 Fixed cost = $1900
Calculated as.
High point is In September = 800 units total cost = $9900
Low point is in June = 560 units total cost = $5600
Variable cost per unit = Difference in total cost at high point and low point/Difference in units
= (9900-7500)/(800-560)
= $2400/240
= $10 per unit
Fixed cost = Total cost - Variable cost at high or low point
At 800 units Fixed cost = Total cost - Variable cost
Fixed cost = $9900-800 units x $10
= $1900
Answer 12 : Total cost of 700 units = $8900
Calculated as
Total Cost of 700 units = fixed cost + variable cost
= $1900+700 units x $10
= $8900
Use the following information for both Question 11 and 12. Rockette, Corp.'s utility costs are listed...