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Below are the processing costs of Darnell Products observed over the last 10 months: Month 1 2 3 4 5 6 7 8 Units Produced
Below are the processing costs of Darnell Products observed over the last 10 months: Month 1 2 3 4 5 6 7 8 Units Produced 7,500 11,000 14,500 5,500 9,000 8,500 3,500 7,000 11,500 6,000 Processing Cost $44,000 60,000 58,000 20,000 47,000 52,000 25,000 41,000 52,000 41,000 9 10 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. (6 marks) b. Predict the total processing cost if 22,000 units are produced. (4 marks) Below are the processing costs of Darnell Products observed over the last 10 months: Month 1 2 3 4 5 6 Units Produced 7,500 11,000 14,500 5,500 9,000 8,500 3,500 7,000 11,500 6,000 Processing Cost $44,000 60,000 58,000 20,000 47,000 52,000 25,000 41,000 52,000 41,000 7 8 9 10 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. (6 marks) b. Predict the total processing cost if 22,000 units are produced. (4 marks)
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