Answered step by step
Verified Expert Solution
Question
1 Approved Answer
P-1 ABC Company produces 55,000 tons of material in August at a cost of $1,150,000. In September, the company produced 35,000 tons at a cost
P-1 ABC Company produces 55,000 tons of material in August at a cost of $1,150,000. In September, the company produced 35,000 tons at a cost of $950,000. Using only these two data points, use the high-low method to calculate the following:
Using thh.e high-low method, calculate the variable cost per unit.
Using the high-low method, calculate the total fixed costs? Write out the cost formula for the monthly production.
Using your formula, estimate costs if 42,000 tons of production are expected for the coming month
Help and explain please
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started