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Benson Woodcraft Company manufactures antique wooden cabinets to house modern televisions. The Company began operations in January of last year. Sidney Myrick, the owner, asks
Benson Woodcraft Company manufactures "antique" wooden cabinets to house modern televisions. The Company began operations in January of last year. Sidney Myrick, the owner, asks for your assistance. He believes that he needs to better understand the cost of the cabinets for pricing purposes. You have collected the following data concerning actual production over the past year: Month January February March April May June July August September October November December Number of Cabinets Produced 860 3,670 1,950 630 1,580 1,290 1,110 1,800 2,340 2,960 3,290 340 Total Cost $21,100 33,300 29,800 18,100 28,700 27,900 25, eee 31,800 32,000 31,600 32,500 9,990 Required a. To understand the department's cost behavior, you decide to plot the points on graph paper and sketch a total cost line. (1) Enter the number of units and their costs in increasing order. b. Using the high-low method, compute the total cost equation for the preceding data. (1) Compute the variable cost per unit. (2) Compute total fixed costs. (4) Calculate the total cost assuming 1,400 cabinets are made. Complete this question by entering your answers in the tabs below. Required A Required B Enter the number of units and their costs in increasing order. Month Number of Cabinets Produced Total Cost
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