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looking at Cost behaviour and Analysis of mixed costs using the high-low method. I understand the concept of using the high-low method but I have

looking at Cost behaviour and Analysis of mixed costs using the high-low method.

I understand the concept of using the high-low method but I have come across a question where the high low for my costs does not match up with the high low for the sales in units. which do I use? For example: my shipping costs high low are in May and April, but my sales in units high low are in June and April. Do I use the cost high and low and the corresponding units high and low, or the units high and low and the corresponding cost high and low?

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The Central Valley Company is a manufacturing firm that produces and sells a single product. The company's revenues and expenses for the last four months are given below Central Valley Company Comparative Monthly Income Statements March April May June 6,300 6,550 $754,000$851,500 425,750 5,800 Sales in units Sales revenue $819,000 417,000 6,700 $871,000 439,000 Less: Cost of goods sold 389,500 Gross margin 402,000 364,500 425,750432,000 Less: Operating expenses Shipping expense Advertising expense 74 400 83,000 189,600 10,300 69,400 83,000 172,800 10,300 52,000 77,650 83,000 190,300 10.300 52.000 77,500 83,000 193,500 10,300 52,000 Salaries & commissions Insurance expense Depreciation expense 52,000 Total operating expenses 409,300387,500 413.250416,300 Net income 5 (7.300)$(23,000) 12.500 15,700 Required: 1. Management is concerned about the losses experienced during the spring and would tike to know more about the cost behaviour Develop a cost equation for each of the costs COGS Shipping Salaries and commissionsYS 39,400S 23X

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