Question
A company wants to develop a monthly cost function for its packaging department. The number of shipments mainly influences the cost. The following information is
A company wants to develop a monthly cost function for its packaging department.
The number of shipments mainly influences the cost. The following information is available:
| Month | # of shipment | Packaging cost $ |
| January | 6,000 | 17,000 |
| February | 9,600 | 26,000 |
| March | 12,000 | 32,000 |
| April | 7,200 | 20,000 |
Calculate the number of shipments at which costs is $15,000 and fixed cost is $2,000 (CLO 2)
a) 10,000 units
b) 9,000 units
c) 5,200 units
d) 9,600 units
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Managerial Accounting An Introduction To Concepts Methods And Uses
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil, Sidney Davidson
7th Edition
0030259630, 978-0030259630
