Based on the following cost data, what conclusions can you make about Product A and Product B?Total CostProductionProduct AProduct B10 units$100100 unitsS1,0001,000 units$10,000Unit CostProductionProduct BProduct A10 unitss10,000$1,000100 units1.000 units$100Multiple ChoiceProduct A is a fixed cost and Product B is a variable costProduct A is a variable cost and Product B is a fixed costProduct A and Product B are both variable costs.Product A and Product B are both mixed costs.

Determine the type of cost for Product A.

Answered: Based on the following cost data, what…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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High-Low Method Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 4,185 $294,840 1,485 189,540 2,840 203,440 a. Determine the variable cost per unit and the total fixed cost. Variable cost (Round to two decimal places.) $fill in the blank 1 per unit Total fixed cost $fill in the blank 2 b. Based on part (a), estimate the total cost for 2,040 units of production. Total cost for 2,040 units: $fill in the blank 3
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High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 4,760 $305,760 1,960 196,560 3,290 236,090 a. Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) $fill in the blank Total fixed cost: $fill in the blank b. Based on part (a), estimate the total cost for 2,420 units of production. Total cost for 2,420 units: $fill in the blank
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