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The following information applies to the questions displayed below.] Alden Co.'s monthly unit sales and total cost data for its operating activities of the past
The following information applies to the questions displayed below.] Alden Co.'s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs. Month 00 Month Units Sold 323,500 168,500 268,500 208,500 293,500 193,500 mton Total Cost $161,000 104,750 209,100 103,500 205,000 115,500 Units Sold 356,500 273,500 75,300 153,500 97,500 103,500 Total Cost $252,716 155, 250 61,500 134, 125 97,500 78,150 2. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) High-Low method - Calculation of Variable Cost per unit Cost at high point minus cost at low point Change in cost Variable cost per unit = Change in volume Volume at high point minus volume at low point 381 200 High-Low method - Calculation of Fixed Costs $ 252,716.00 356,500 units sold Total cost at the high point Variable costs at the high point: Volume at the high point Variable cost per unit Total variable costs at the high point Total fixed costs $ 61,500.00 Total cost at the low point Variable costs at the low point: Volume at the low point Variable cost per unit 75,300 units sold Total variable costs at the low point 0.00 Total fixed costs 3. Predict future total costs when sales volume is (a) 383,000 units and (b) 423,000 units. Predictions 383,000 Sales (units) 423,000 Total costs
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