Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output
Refer to the information for Speedy Pete’s above. Assume that this information was used to construct the following formula for monthly delivery cost.
Required:
Assume that 3,000 deliveries are budgeted for the following month of January. Use the total delivery cost formula for the following calculations:
- 1. Calculate total variable delivery cost for January.
- 2. Calculate total delivery cost for January.
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