AP Westerville Company accumulates the following data concerning a mixed cost, using units produced as the activity level.

Units Produced

Total Cost

March

April

May

June

July

10,000

9,000

10,500

8,800

9,500

$18,000

16,650

18,580

16,200

17,100

1. Compute the variable- and fixed-cost elements using the high-low method.
2. Using the information from your answer to part (a), write the cost formula.
3. Estimate the total cost if the company produces 9,200 units.

Prepare CVP income statement.

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