2. Predict future total costs when sales volume is (a) 379,000 units and (b) 419,000 units. Units Fixed costs Variable costs Total $ (a) Predictions 379,000 $ (b) 419,000 0

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Alden Company's monthly data for the past year follow. Management wants to use these data to predict future
variable and fixed costs.
Month Units Sold
1
2
3
4
Total
5
6
Units
Fixed costs
Variable costs
319,500
164,500
264,500
204,500
289,500
189,500
$
Total Cost
$ 157,000
100, 750
205, 100
(a)
2. Predict future total costs when sales volume is (a) 379,000 units and (b) 419,000 units.
99,500
201,000
111,500
Predictions
379,000
0 $
Month
7
8
9
10
11
12
(b)
419,000
Units Sold
360,500
269,500
76,100
149,500
93,500
99,500
0
Total Cost
$ 281,644
151, 250
65,500
130, 125
93,500
82,150
Transcribed Image Text:Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month Units Sold 1 2 3 4 Total 5 6 Units Fixed costs Variable costs 319,500 164,500 264,500 204,500 289,500 189,500 $ Total Cost $ 157,000 100, 750 205, 100 (a) 2. Predict future total costs when sales volume is (a) 379,000 units and (b) 419,000 units. 99,500 201,000 111,500 Predictions 379,000 0 $ Month 7 8 9 10 11 12 (b) 419,000 Units Sold 360,500 269,500 76,100 149,500 93,500 99,500 0 Total Cost $ 281,644 151, 250 65,500 130, 125 93,500 82,150
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