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[The following information applies to the questions displayed below.] Alden Company's monthly data for the past year follow. Management wants to use these data
[The following information applies to the questions displayed below.] Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month Units Sold Total Cost Month Units Sold 1 318,000 $ 155,500 7 362,000 Total Cost $ 292,624 2 163,000 99,250 8 268,000 149,750 3 263,000 203,600 9 76,400 67,000 4 203,000 98,000 10 148,000 128,625 5 288,000 6 188,000 199,500 110,000 11 92,000 92,000 12 98,000 83,650 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) Change in cost Change in volume High-Low method - Calculation of variable cost per unit Cost at high point minus cost at low point Volume at high point minus volume at low point High-Low method - Calculation of fixed costs 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 Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit Total variable costs at the low point Total fixed costs
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