and total cost data for its operating activities of the past year Management wants to use these data to predict future fixed and variable costs. Month Units Sold Total Cost Month Units Sold 1 320,000 $160,000 7 340,000 Total Cost $220,000 2 160,000 100,000 8 280,000 160,000 280,000 220,000 9 80,000 64,000 4 200,000 100,000 10 160,000 140,000 5 300,000 230,000 11 100,000 100,000 6 200,000 120,000 12 110,000 80,000 Predict future total costs when sales volume is (a) 200,000 units and (b) 300,000 units. alon (unite) Predictions 200.000 300.000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Alden Co.'s monthly unit sales and total cost data for its operating activities of the past year follow.
Management wants to use these data to predict future fixed and variable costs.
Month Units Sold
Total Cost
Month
Units Sold
Total Cost
123456
1
320,000
$160,000
7
340,000
$220,000
160,000
100,000
8
280,000
160,000
3
280,000
220,000
9
80,000
64,000
200,000
100,000
10
160,000
140,000
300,000
230,000
11
100,000
100,000
6
200,000
120,000
12
110,000
80,000
2. Predict future total costs when sales volume is (a) 200,000 units and (b) 300,000 units.
Sales (units)
Variable costs
Fixed costs
Total
Predictions
200,000
0
300,000
Transcribed Image Text:Alden Co.'s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs. Month Units Sold Total Cost Month Units Sold Total Cost 123456 1 320,000 $160,000 7 340,000 $220,000 160,000 100,000 8 280,000 160,000 3 280,000 220,000 9 80,000 64,000 200,000 100,000 10 160,000 140,000 300,000 230,000 11 100,000 100,000 6 200,000 120,000 12 110,000 80,000 2. Predict future total costs when sales volume is (a) 200,000 units and (b) 300,000 units. Sales (units) Variable costs Fixed costs Total Predictions 200,000 0 300,000
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