(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.
(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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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[The following information applies to the questions displayed below.]
Felix & Company reports the following information.
Period
Units Produced
Total Costs
1234567820
0
$ 2,560
400
3,160
800
3,760
1,200
4,360
1,600
4,960
2,000
5,560
2,400
6,160
2,800
6,760
3,200
7,360
3,600
7,960
Exercise 18-5 (Algo) Measuring costs using high-low method LO P1
(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
High-Low method - Calculation of fixed costs](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d3d8deb-8b5d-4bc6-b1e1-562032e8da26%2F76f61094-8688-4e30-9d35-9156dfa42328%2Fhrqgoh8_processed.png&w=3840&q=75)
Transcribed Image Text:ces
[The following information applies to the questions displayed below.]
Felix & Company reports the following information.
Period
Units Produced
Total Costs
1234567820
0
$ 2,560
400
3,160
800
3,760
1,200
4,360
1,600
4,960
2,000
5,560
2,400
6,160
2,800
6,760
3,200
7,360
3,600
7,960
Exercise 18-5 (Algo) Measuring costs using high-low method LO P1
(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
High-Low method - Calculation of fixed costs
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