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Mr. Baker is a local bakery that operates in Kuwait. Their controller is trying to determine the company's cake production cost behavior. Cakes produced (X)
Mr. Baker is a local bakery that operates in Kuwait. Their controller is trying to determine the company's cake production cost behavior. Cakes produced (X) Total Production Costs (Y) January 500 1620 600 1700 February March 500 1600 April 700 1960 May 450 1350 June 400 1300 Required: A. Use the high-low method to estimate: The variable costs per unit produced (15 points) The total fixed costs (20 points) Express the cost behavior in an equation form (5 points) B. Predict the cakes production costs that will be incurred when 800 cakes are prepared (20 points)
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