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c. The following information relates to cost incurred by Tree Top Company in relations to utilities costs incurred by the Company in the month of
c. The following information relates to cost incurred by Tree Top Company in relations to utilities costs incurred by the Company in the month of March 2021. Month Cans of food Cost Produced January 21,000 22,100 February 22,000 22,000 March 24,000 22,450 April 30,000 22,900 May 32,000 23,350 June 40,000 28,000 July 41,000 24,100 Page 1 of 4 I Required i. Use the high-low method to estimate the company's utilities variables cost per unit and fixed costs. (6 Marks) ii. Write the cost equation in proper form by inserting the values computed above in the cost formular equation (2 Marks) iii. Predict the utilities cost for a month in which 50,000 units of food are canned. (2 Marks)
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