Question
The following information relating to production and mixed costs are extracted from the book of Abdur Rahmans manufacturing firm: Months Production (units) Mixed costs January
The following information relating to production and mixed costs are extracted from the book of Abdur Rahmans manufacturing firm: Months Production (units) Mixed costs January 6,800 $31,580 February 6,400 $30,240 March 7,200 $32,740 April 8,000 $35,060 May 6,600 $31,000 June 7,000 $32,160 Required: a) Using the high and low method, estimate the variable cost per unit and fixed costs elements from the above information.
b) Express the variable and fixed costs in the form Y=a+bx .
c) What will be the mixed cost of production 7,500 units for the month of July?
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