Question
Toshiba manufacturing produces and sells CD players. The selling price for a CD player is $100. Total operating expenses for the past 12 months are
Toshiba manufacturing produces and sells CD players. The selling price for a CD player is $100. Total operating expenses for the past 12 months are as follows.
Month Unit Sold Cost($)
January 135 10767
February 145 13799
March 150 12457
April 160 12650
May 165 13765
June 140 11240
July 145 12065
August 125 10820
September 120 11110
October 135 11420
November 145 11670
December 140 11576
1. Using the high-low method, what is the variable cost per unit?
2. Based on your answer from question #1, how much is fixed costs, and what is the cost function?
3. According to your estimated cost function from question #2, what is the break- even point of sales?
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IS Audit And Control For Accountants
Authors: Mr Amir Manzoor
1st Edition
1493665006, 978-1493665006
