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Below are the processing costs of Darnell Products observed over the last 10 months: Month Units Produced Processing Cost 7,500 $44,000 2 11,000 60,000
Below are the processing costs of Darnell Products observed over the last 10 months: Month Units Produced Processing Cost 7,500 $44,000 2 11,000 60,000 3 14,500 59.320 14 5,500 20,000 15 9,000 47,000 16 8,500 $2,000 7 3,500 25,000 8 4,000 21,000 19 11,500 $2,000 10 6,000 41,000 a- Use the high low method to determine the variable cost per unit and fixed cost per month. Express your results in the form of a linear equation y a+bx. (15 marks) b- Predict the total processing cost if 16,000 units are produced. (5 marks)
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