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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started