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Below are the processing costs of Darnell Products observed over the last 10 months: Month Units Produced Processing Cost 1 7,500 $44,000 2 11,000 52,000
Below are the processing costs of Darnell Products observed over the last 10 months:
Month Units Produced Processing Cost
1 7,500 $44,000
2 11,000 52,000
3 15,000 59,000
4 5,500 38,000
5 9,000 47,000
6 8,500 52,000
7 2,500 28,000
8 7,000 41,000
9 11,500 52,000
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.
b.Predict the total processing cost if 22,000 units are produced.
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