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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 2 3 4 5 6 Units Sold 317,500 162,500 262,500 202,500 287,500 187,500 Total Cost $155,000 98,750 203, 100 97,500 199,000 109,500 Month 7 8 9 10 11 12 Units Sold 362,500 267,500 76,500 147,500 91,500 97,500 Total Cost $296,300 149, 250 67,500 128, 125 91,500 84,150 1. 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 Change in cost Cost at high point minus cost at low point 0 Change in volume Cost at low point minus cost at high point High-Low method - 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 variable 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 Total fixed costs
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