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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 | |||||||||||||||
3. Predict future total costs when sales volume is (a) 200,000 units and (b) 300,000 units.
3. Predict future total costs when sales volume is (a) 200,000 units and (b) 300,000 units. Predictions 200.000 + 300,000 Sales fonts)Step by Step Solution
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