(1) Use the high-low method to estimate the fixed and variable components of total costs (2) Estimate total costs if 3,000 units are produced. High-Low method - Calculation of variable cost per unit Total cost at the high point Variable costs at the high point Volume at the high point Variable cost per unit Total variable costs at the high point Total fixed costs High-Low method - Calculation of fixed costs Total cost at the low point Variable costs at the low point Volume at the low point Variable cost per unit Total variable costs at the low point Total fixed costs (2) Estimated cost if 3,000 units are produced: Estimated total cost
(1) Use the high-low method to estimate the fixed and variable components of total costs (2) Estimate total costs if 3,000 units are produced. High-Low method - Calculation of variable cost per unit Total cost at the high point Variable costs at the high point Volume at the high point Variable cost per unit Total variable costs at the high point Total fixed costs High-Low method - Calculation of fixed costs Total cost at the low point Variable costs at the low point Volume at the low point Variable cost per unit Total variable costs at the low point Total fixed costs (2) Estimated cost if 3,000 units are produced: Estimated total cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(1) Use the high-low method to estimate the fixed and variable components of total costs
(2) Estimate total costs if 3,000 units are produced.
High-Low method - Calculation of variable cost per unit
Total cost at the high point
Variable costs at the high point
Volume at the high point
Variable cost per unit
Total variable costs at the high point
Total fixed costs
High-Low method - Calculation of fixed costs
Total cost at the low point
Variable costs at the low point
Volume at the low point
Variable cost per unit
Total variable costs at the low point
Total fixed costs
(2) Estimated cost if 3,000 units are produced:
Estimated total cost
![Required information
Use the following information for the Exercises below. (Static)
[The following information applies to the questions displayed below.]
Felix & Company reports the following information.
Period
1
9
10
Units Produced
0
400
800
1,200
1,600
2,000
2,400
2,800
3,200
3,600
Total Costs
$ 2,500.
3,100
3,700
4,300
4,900
5,500
6,100
6,700
7,300
7,900
Exercise 18-5 (Static) Measuring costs using high-low method LO P1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe99d8299-2c4c-4674-9d14-f8e2ee1a6da3%2F8262c35b-c74c-4f91-a9a9-a4db1695a7f5%2Ftps9kri_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Use the following information for the Exercises below. (Static)
[The following information applies to the questions displayed below.]
Felix & Company reports the following information.
Period
1
9
10
Units Produced
0
400
800
1,200
1,600
2,000
2,400
2,800
3,200
3,600
Total Costs
$ 2,500.
3,100
3,700
4,300
4,900
5,500
6,100
6,700
7,300
7,900
Exercise 18-5 (Static) Measuring costs using high-low method LO P1
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