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Island Production Company has a system of production that produces Product ZMQ in batches. The following table shows the total cost for producing different batches
Island Production Company has a system of production that produces Product ZMQ in batches. The following table shows the total cost for producing different batches of the product: Units Total Cost $ 1250 2405 1150 2315 1050 2225 1000 2180 900 2090 800 2000 Required: Use the High Low Method of separating costs to do the following: (a) Find the variable cost per unit. (8 marks) (b) Find the fixed cost present in the above cost structure. (3 marks) (c)
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