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company manufactures a specialized equipment. At the lowest activity level of 4,000 units, the company incurs $162,000 in maintenance costs. This amount includes equipment
company manufactures a specialized equipment. At the lowest activity level of 4,000 units, the company incurs $162,000 in maintenance costs. This amount includes equipment cost of $38,000 (all fixed) and inspection cost of $64,000 (all variable). The remaining $60,000 of the maintenance costs consists of expert testing cost (mixed). At the highest activity level of 6,000 units, expert testing cost totals $80,000. Assume that the relevant range includes all of the activity levels mentioned in this problem for the company. Suppose the 4,800 units the next period, how much would the company uses the high-low method to estimate its maintenance cost. If the the company's total expected maintenance cost be? company plans to produce
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