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Munoz Woodcraft Company manufactures antique wooden cabinets to house modern televisions. The Company began operations in January of last year. Sidney Myrick, the owner,
Munoz Woodcraft Company manufactures "antique" wooden cabinets to house modern televisions. The Company began operations in January of last year. Sidney Myrick, the owner, asks for your assistance. He believes that he needs to better understand the cost of the cabinets for pricing purposes. You have collected the following data concerning actual production over the past year: Total Cost Month January Number of Cabinets Produced 820 $21,200 February 3,670 32,500 March 1,950 29,200 April 680 18,500 May 1,550 28,800 June 1,260. 27,200 July 1,170. 25,400 August 1,750 31,500 September 2,350 32,600 October 2,980 31,600 November 3,290 32,000 December 340 12,520 Required a. To understand the department's cost behavior, you decide to plot the points on graph paper and sketch a total cost line. (1) Enter the number of units and their costs in increasing order. b. Using the high-low method, compute the total cost equation for the preceding data. (1) Compute the variable cost per unit. (2) Compute total fixed costs. (4) Calculate the total cost assuming 1,700 cabinets are made. Complete this question by entering your answers in the tabs below.
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