Question
Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has
Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 8,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below.
| Type A | Type B | Type C | Total | |||||||||||||||
| 5,000 | units | $ | 20 | $ | 57 | $ | 20 | $ | 97 | |||||||||
| 7,500 | units | 20 | 38 | 19 | 77 | |||||||||||||
If Shum produces 8,000 units, the total cost would be:
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Business Of Sport Management
Authors: John Beech, Simon Chadwick
2nd Edition
027372133X, 9780273721338
