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NI Co. estimated the following data for the year: Sales CGS Quarter 1 $20,000.00 $15,800.00 Quarter 2 $18,000.00 $14,000.00 Quarter 3 $22,000.00 $17,300.00 Quarter 4
| NI Co. estimated the following data for the year: | ||
| Sales | CGS | |
| Quarter 1 | $20,000.00 | $15,800.00 |
| Quarter 2 | $18,000.00 | $14,000.00 |
| Quarter 3 | $22,000.00 | $17,300.00 |
| Quarter 4 | $30,000.00 | $18,500.00 |
| Total | $90,000.00 | $65,600.00 |
| The production manager ask you to assist him in estimating (CGS=a+b*Sales) using high-low method. | ||
| Find estimated total fixed costs | ||
| Less than $7,000 | ||
| between $7,000 and $8,000 | ||
| between $8,000 and $9,000 | ||
| More than $9,000 |
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