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Alden Co.s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to
Alden Co.s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs.
Month | Units Sold | Total Cost | Month | Units Sold | Total Cost | |||||||||||||||
1 | 320,000 | $ | 160,000 | 7 | 340,000 | $ | 220,000 | |||||||||||||
2 | 160,000 | 100,000 | 8 | 280,000 | 160,000 | |||||||||||||||
3 | 280,000 | 220,000 | 9 | 80,000 | 64,000 | |||||||||||||||
4 | 200,000 | 100,000 | 10 | 160,000 | 140,000 | |||||||||||||||
5 | 300,000 | 230,000 | 11 | 100,000 | 100,000 | |||||||||||||||
6 | 200,000 | 120,000 | 12 | 110,000 | 80,000 | |||||||||||||||
2 Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round Intermediate calculations.) High-Low method - Calculation of variable cost per unit High-Low -thod - Calculation of fixed costs Total cost at the high point Variable costs at the high point Volume at the high point: Variable cost per unit Total vanable costs at the high point Total Fixed costs Total cost at the low point Variable costs at the low point: Volume at the low point. Variable cost per unit Total variable costs at the low point Tota fized costs
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