Crux, Inc., produces amplifiers. Each unit sells for $900. Below is information on production/sales and costs for

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Crux, Inc., produces amplifiers. Each unit sells for $900. Below is information on production/sales and costs for 2020: 

Selling and Admin. Costs Production and Production Sales in Units Costs 105 $ $ January February 88,860 23,570 117 97,600 25,200 March 97 83,007 22,495 April Мay 106 89,600 23,720 115 96,200 24,950 June 125 103,500 26,250 July August September 128 105,670 26,690 132 108,550 27,200 138 112,978 28,030 October


Required 

a. Use the high-low method to identify the fixed and variable cost components for both production costs and selling and administrative costs. 

b. The company estimates that production and sales in 2021 will be 1,650 units. Based on this estimate, forecast income before taxes for 2021.

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Managerial Accounting

ISBN: 9781119577720

7th Edition

Authors: James Jiambalvo

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