• EcoBuild Materials supplies construction materials and needs to understand its cost structure concerning material tons sold.
• Data Collected:
  • Q1: Total Costs: $700,000, Tons of Materials Sold: 10,000
  • Q3: Total Costs: $1,000,000, Tons of Materials Sold: 15,000
• Tasks:
  • Apply the High-Low Method to compute the variable cost per ton and fixed costs.
  • Formulate a cost equation based on the analysis.
  • Estimate the total costs for selling 18,000 tons of materials.
  • Discuss how changes in sales volume impact cost behavior and pricing strategy.