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
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To calculate the variable cost per unit using the highlow method we need to identify the highest and ...
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Managerial Accounting
Authors: James Jiambalvo
4th edition
9780470546888, 9780470333341, 470546883, 470333340, 978-0470578797
