Crux, Inc., produces amplifiers. Each unit sells for $900. Below is information on production/sales and costs for
Question:
Crux, Inc., produces amplifiers. Each unit sells for $900. Below is information on production/sales and costs for 2020:
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.
Transcribed Image Text:
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 126 104,200 26,400 November 124 102,750 26,150 December 108 91,050 23,990 Total 1,421 $ 1,183,965 $ 304,645 Average cost per unit $833.19141 $214.38776
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a Production costs 112978 83007 138 97 731 variable cost per unit 112978 731 138 12100 fixed ...View the full answer
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Rohit Thakur
Hello!
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2. Revision modules :- I insist a great deal of effort is put by me in helping my students to design revision sheets which are a great help as the exams are near. Separate time shall be invested by me to help the student design the modules.
3. Explicit schedule unique for each student/batch :- The schedule will help my students with a better management of other subjects as well. Forming of the schedule will be influenced by the points mentioned by the students in our first interactive sessions.
4. Standard books :- Textbooks of only standard level globally are used as reference to lessons, exams and revision modules.
5. Burden of purchasing books diminished :- The books referred carefully such that the student does not have the burden on their pocket-money to buy a book. The books available online are referred and also on request pdf shall be shared with the student by me.
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Good luck guys, see you soon!
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