Question
Case #2 Achilles Inc. recorded the following data for operations during six months of the fiscal year: Total manufacturing cost Number of units produced
Case #2 Achilles Inc. recorded the following data for operations during six months of the fiscal year: Total manufacturing cost Number of units produced May June 625 $265,000.00 680 $287,500.00 July 600 $260,000.00 August 775 $305,000.00 September 875 $325,000.00 October 1000 $350,000.00 Required (A) Using the high-low method, construct the cost formula for manufacturing costs. (B) Using the cost formula from (A), estimate the cost of producing 1,200 units. (C) Assume that the selling price is $725 per unit. Use CVP analysis to compute the break- even point in units.
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