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During the first two months of operations, i.e. January and February 2020, Hamzah Inc. produced 6728 and 8117 units of products respectively. Maintenance costs in

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During the first two months of operations, i.e. January and February 2020, Hamzah Inc. produced 6728 and 8117 units of products respectively. Maintenance costs in those two months were $119087, $159477 respectively. The manager, Umar, initially considered maintenance to be a fixed cost, but by the end of the second month of operations, he realized that maintenance cost is probably a mixed cost. He is expecting production and sales to increase to 18093 in the month of March and as such wants a better prediction of maintenance cost. (a) Using the high-low method, the estimated variable maintenance cost per unit is $ (b) Using the high-low method, the estimated total fixed maintenance cost is $ () Using the answers from (a) and (b), the best estimate of maintenance cost for the month of March is $ Submit You have used 0 of 1 attempt Save

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