Question
Question 3 (10 marks) a) Use the high-low method, calculate the variable cost per unit, the fixed cost and the cost equation for this following
Question 3 (10 marks)
a) Use the high-low method, calculate |
the |
variable cost per |
unit, |
the fixed cost and the cost |
equation for this following data. |
|
|
|
|
|
| Activity |
| $ |
January |
| 400 |
| 1,050 |
February |
| 600 |
| 1,700 |
March |
| 550 |
| 1,600 |
April |
| 800 |
| 2,100 |
May |
| 750 |
| 2,000 |
June |
| 900 |
| 2,300 |
b) A company produces electronic circuit boards. Each circuit board has a raw material input of
$60 and labour input that costs $20. The company must also pay the rent of the factory building
$20,000 per annum, business rates of $4,000 per annum and the production directors salary of
$24,000 per annum.
Required: identify the variable costs and fixed costs of this business.
PLEASE HELP ME TO ANSWER THIS QUESTION. VERY URGENT. THANK YOU
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