Question
Cena Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost.
Cena Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:
| Units Produced | Total Costs |
| 84,000 | $22,100,000 |
| 99,000 | 25,220,000 |
| 110,000 | 31,770,000 |
- Determine the variable cost per unit and the total fixed cost.
- Based on part (A), estimate the total cost for 115,000 units of production.
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
4th edition
978-0073369709, 73369705, 78025370, 978-0077444846, 77444841, 978-0078025372
