Question
High-Low Method Liberty Inc. has decided to use the high-low method to estimate costs. The data for various levels of production are as follows: Units
High-Low Method
Liberty Inc. has decided to use the high-low method to estimate costs. The data for various levels of production are as follows:
| Units Produced | Total Costs | ||
| 100,000 | $1,800,000 | ||
| 180,000 | 2,800,000 | ||
| 300,000 | 4,300,000 | ||
a. Determine the variable cost per unit and the fixed cost. Round variable cost per unit to the nearest cent.
| Variable cost per unit | $ |
| Fixed cost | $ |
b. Based on part (a), estimate the total cost for 260,000 units of production. $
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The Book Marketing Audit
Authors: Kilby Blades
1st Edition
0985798335, 978-0985798338
