Williams Inc. produces fluorescent lightbulbs for commercial use. The accounting manager is attempting to estimate the total

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Williams Inc. produces fluorescent lightbulbs for commercial use. The accounting manager is attempting to estimate the total cost for the next quarter using the high-low method. He has compiled data and found the high and low costs are $10,000 and $6,000 and the associated cost drivers are 7,000 and 3,000 packs, respectively. He has also determined the variable cost to be $1.00 per pack.
What is the value for a (the fixed quantity)?

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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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