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Question 4: High-Low Time: 30 minutes Total: 20 marks Below are the processing costs of Darnell Products observed over the last 10 months: Month 1
Question 4: High-Low Time: 30 minutes Total: 20 marks Below are the processing costs of Darnell Products observed over the last 10 months: Month 1 2 3 4 5 6 7 8 9 10 Units Produced 7,500 11,000 14,500 5,500 9,000 3,500 3,875 2.000 11.500 6,000 Processing Cost $44,000 60,000 58.000 20,000 47,000 52,000 24,000 41.000 52.000 41,000 a. Use the high low method to determine the variable cost per unit and fixed cost per month. Express your results in the form of a linear equation y = a + box (14 marks) b- Predict the total processing cost of 20,000 units are produced. (6 marks)
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