Can u answer questions d and e for me please (1).pdf1/1100%The table below shows monthly data collected on production costs and on the number ofunits produced over a twelve month period.Level of Activity(Units Produced)MonthTotal ProductionCostsJuly$230,0003,500August250,0003,750September260,0003,800October220,0003,400November340,0005.800December330,0005,500January200,0002,900February210,0003.300March240,0003.600April380,000.5.900Мay350,0005,600June290,0005,000 1).pdf1/ 1100%May350,0005,600June290,0005,000a) Determine the variable cost per unit and the fixed cost using the high-lowmethod.b) What is the equation of the total mixed cost function?c) Prepare the seatter diagram, clearly showing any outliers.d) Using the line of best-fit, determine the company's fixed cost per month and thevariable cost per unit. (use o § 5,000 units.)e) In view of the department's cost behaviour pattern, which of the two methodsappear more appropriate? Explain your answer.

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 14MC: A company produces two products. E and F in batches of 100 units. The production and cost data are:...

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Discussion QuestionThe table below shows monthly data collected on production costs and on the number of unitsproduced over a twelve month period.Month Total ProductionCostsLevel of Activity(Units Produced)July $230,000 3,500August 250,000 3,750September 260,000 3,800October 220,000 3,400November 340,000 5,800December 330,000 5,500January 200,000 2,900February 210,000 3,300March 240,000 3,600April 380,000 5,900May 350,000 5,600June 290,000 5,000a) Determine the variable cost per unit and the fixed cost using the high-low method.b) What is the equation of the total mixed cost function?c) Based on the High-Low method, what is the total production costs if 6,500 units areproduced?d) Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scale of 2cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the yaxis.e) Using the line of best-fit, determine the company’s fixed cost per month and the variablecost per unit. (Use 0 & 5,000…
Discussion QuestionThe table below shows monthly data collected on production costs and on the number ofunits produced over a twelve month period. Month Total Production Costs Level of Activity (Units Produced)July $230,000 3,500August 250,000 3,750September 260,000 3,800October 220,000 3,400November 340,000 5,800December 330,000 5,500January 200,000 2,900February 210,000 3,300March 240,000 3,600April 380,000 5,900May 350,000 5,600June 290,000 5,000 a) Determine the variable cost per unit and the fixed cost using the high-low method. b) What is the equation of the total mixed cost…
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