Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I just need help with the ? marked blocks for E6-2A. E6-1A is just for information. Thank You E6-1A. Cost-Volume Graphs Set up a cost-volume
I just need help with the ? marked blocks for E6-2A. E6-1A is just for information. Thank You
E6-1A. Cost-Volume Graphs Set up a cost-volume graph. Volume should range from zero to 24,000 units (in 4,000-unit increments), and cost should range from zero to $35,000 (in $5,000 increments). Plot each of the following groups of cost data using different marks for each group. After completing the graph, indicate the type of cost behavior exhibited by each group. Volume (applicable to each group) Group A Costs Group B Costs Group C Costs 2,000 12,000 16,000 20,000 $ 2,600 12,600 16,600 20,600 $ 1.000 6,000 8,000 10,000 $2,400 2,400 2,400 2,400 E6-2A. High-Low Method Apply the high-low method of cost analysis to the three cost data groups in E6-1A. What cost behavior patterns are apparent? Express each as a cost formula. 1 Group A Group B Group C 2 3 Low 2000 $2,600 ? ? 4 High 20000 $20,600 ? ? 5 6 VC $1 ? ? 7 Fixed cost $600 ? ? 8 Total cost = $600 + $1*units 9 10 11 12 VC per unit = (difference in costs)/difference in units 13 Fixed cost = Total costs - (VC* units) 14 Total cost = Fixed cost + (VC*units)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started