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Analyze cost behavior and prepare a cost function. Activity Level Total Costs ($) 1,000 units $20,000 2,000 units $25,000 3,000 units $30,000 Requirements: Determine the
Analyze cost behavior and prepare a cost function.
Activity Level | Total Costs ($) |
1,000 units | $20,000 |
2,000 units | $25,000 |
3,000 units | $30,000 |
Requirements:
Determine the fixed and variable components of the cost.
Prepare a cost function using the high-low method.
Forecast total costs at different activity levels.
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