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The following information is available regarding the total repair costs of Billys Automotive Company for six months of 2016: # of Units produced Total Cost
The following information is available regarding the total repair costs of Billys Automotive Company for six months of 2016:
| # of Units produced | Total Cost |
January | 1,600 | $ 15,700 |
February | 1,850 | $ 17,300 |
March | 1,100 | $ 12,550 |
April | 1,350 | $ 14,100 |
May | 1,975 | $ 18,000 |
June | 2,350 | $ 21,050 |
Instruction: (show your calculations and round to 2 decimal places)
- Compute the following using the high low method:
-
- The variable element of repair cost per unit of production:
-
- The fixed element of the monthly total cost:
Use the cost relationship determined in part (A) to estimate the total cost for July 2016, given that the production is scheduled for 2,600 units
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