Welcome to Westonci.ca, where you can find answers to all your questions from a community of experienced professionals. Experience the ease of finding reliable answers to your questions from a vast community of knowledgeable experts. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.
Sagot :
Answer:
Results are below.
Explanation:
Giving the following information:
Units Produced Total Costs
101,500 $28,022,500
118,500 30,997,500
131,500 33,272,500
To calculate the fixed and variable costs, we need to use the high-low method:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (33,272,500 - 28,022,500 ) / (131,500 - 101,500)
Variable cost per unit= $175
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 33,272,500 - (175*131,500)
Fixed costs= $10,260,000
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 28,022,500 - (175*101,500)
Fixed costs= $10,260,000
Now, the total cost for 115,000 units:
Total cost= 10,260,000 + 175*115,000
Total cost= $30,385,000
Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.