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Name: The data below have been taken from the cost records of the Atlanta Processing Company. The data relate to the cost of operating one
Name: The data below have been taken from the cost records of the Atlanta Processing Company. The data relate to the cost of operating one of the company's processing facilities at various levels of activity: Units Processed Total Cost Month January February March April May June July August 8,000 4,500 7,000 9,000 3,750 6,000 3,000 5,000 $14,000 10,000 12,500 15,500 10,000 12,500 8,500 11,500 Required: 1. Using the high-low method, estimate the cost formula for Atlanta Processing's total cost. COST FORMULA= What is the estimated total fixed cost? 2. TOTAL FIXED COSTS = What is the estimated variable cost per unit? 3. VARIABLE COSTS PER UNIT = What is the estimated total cost if 7194 units are processed? 4. ESTIMATED TOTAL COSTS = What is the relevant range of activity for this problem? 5. RELEVANT RANGE = FROM UNITS, TO UNITS
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