.. Inpert m D Mat A 5. 1-/2 Points] DETAILS Question 5: Cost structure estimation month activity volume in units total cost Oct 90 $5,690 NOV 75 $5,750 Dec 110 $7,500 MY NOTES ASK YOUR TEACHER 34 ACCT 3102, l PRACTICE ANOTHER O homas P. C emple Univ sk Manage ring, 2021 1. a) Which cost structure estimation method should we use? high-low method account classification method b) To identify the low and high points, we should look for Clowest/highest activity lowest/highest costs c) Estimate the cost structure parameters: total FC unit V Write down the total cost equation TC= volume d) Predict the total costs of producing 100 units TC- e) Can we use the estimates from (c) to predict costs at volume of 5,000 units? ONO: 5,000 units is outside the relevant range (the normal range of activity is around 75-110 units). YES: Just plug in volume 5,000 in the total cost equation. 2 38 SC 62 0 54 #3 Q W E A S D 45 % MacBook Pro 6 AF 27 & R T Y U 8 W 6 LL F G H J K