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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. Problem 18-2A Cost behavior estimation- high-low P1 Month Month Units Sold 320,000 160,000 280,000 200.000 300,000 200,000 Total Cost $160.000 100,000 220,000 100,000 230,000 120,000 Units Sold 340,000 280,000 80,000 160,000 100,000 110,000 Total Cost $220,000 160,000 64,000 140,000 100,000 80,000 12 .... Required 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. 2. Use the results from part I to predict future total costs when sales volume is (a) 200,000 units and (b) 300,000 units
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