Cena Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 80,000 $25,200,000 99,000 25,220,000 130,000 31,770,000 a. Determine the variable cost per unit and the total fixed cost. b. Based on part (A), estimate the total cost for 115,000 units of production.
Cena Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 80,000 $25,200,000 99,000 25,220,000 130,000 31,770,000 a. Determine the variable cost per unit and the total fixed cost. b. Based on part (A), estimate the total cost for 115,000 units of production.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7E: High-low method Ziegler Inc. has decided to use the high-low method to estimate the total cost and...
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Cena Inc. has decided to use the high-low method to estimate the total cost and the fixed and
variable cost components of the total cost. The data for various levels of production are as
follows:
Units Produced Total Costs
80,000 $25,200,000
99,000 25,220,000
130,000 31,770,000
a. Determine the variable cost per unit and the total fixed cost.
b. Based on part (A), estimate the total cost for 115,000 units of production.
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