Question
The Western Company presents the production and cost data for the first six months of the 2015. Month Units produced Mixed costs ($) January 15000
The Western Company presents the production and cost data for the first six months of the 2015.
| Month | Units produced | Mixed costs ($) |
| January | 15000 | 45000 |
| February | 18000 | 56000 |
| March | 22000 | 60000 |
| April | 16000 | 48000 |
| May | 30000 | 75000 |
| June | 26000 | 62000 |
Required: Using the high-low point method, determine the followings:
- Estimated variable cost rate.
- Fixed cost.
- Also determine the cost function based on data given above.
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
7th edition
978-0077632427, 77632427, 78025656, 978-0078025655
