Question
During the first two months of operations, i.e. January and February 2020, Hamzah Inc. produced 6609 and 8575 units of products respectively. Maintenance costs in
During the first two months of operations, i.e. January and February 2020, Hamzah Inc. produced 6609 and 8575 units of products respectively. Maintenance costs in those two months were $119838, $175812 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 15293 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 $ unanswered
(b) Using the high-low method, the estimated total fixed maintenance cost is $ unanswered
(c) Using the answers from (a) and (b), the best estimate of maintenance cost for the month of March is $ unanswered
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