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[The following information applies to the questions displayed below.] Yang Manufacturing, which uses the high-low method, makes a product called Yin. The company incurs three
[The following information applies to the questions displayed below.] Yang Manufacturing, which uses the high-low method, makes a product called Yin. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 4,000 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 | $7 | $18 | $7 | $32 |
7,500 units | $7 | $12 | $6 | $25 |
If Yang produces 4,000 units, the total cost would be:
$143,000.
$149,000.
$88,000.
an amount other than those given above.
$114,000.
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