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Q4. A plastic product is manufactured by SLT Company. For total costs, the company estimates the cost function. The number of units is the
Q4. A plastic product is manufactured by SLT Company. For total costs, the company estimates the cost function. The number of units is the cost driver. The following details were gathered: (2 Marks) Month Units Total Cost (SAR) March 4,370 44,300 April 4,680 44,600 May 5,000 45,000 June 5,300 45,400 July 5,600 47,500 August 5,900 57,500 September 3,400 40,000 October 4,100 40,625 Use the high-low analysis method and answer the following: a) Calculate Variable Costs and fixed costs. b) Determine the cost function.
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