cost t per unit an
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assistance with d and e plz

Transcribed Image Text:May
350,000
5,600
June
290,000
5,000
a) Determine the variable cost per unit and the fixed cost using the high-low
method.
b) What is the equation of the total mixed cost function?
c) Prepare the scatter diagram, clearly showing any outliers.
d) Using the line of best-fit, determine the company's fixed cost per month and the
variable cost per unit. (use og 5,000 units.)
S.
e) In view of the department's cost behaviour pattern, which of the two methods
appear more appropriate? Explain your answer,

Transcribed Image Text:Discussion Question
The table below shows monthly data collected on production costs and on the number of
units produced over a twelve month period.
Month
Total Production
Level of Activity
(Units Produced)
Costs
July
$230,000
3.500
August
250,000
3.750
September
260,000
3.800
October
220,000
3.400
November
340,000
5.800
December
330,000
5.500
January
200,000
2,900
February
210,000
3.300
March
240,000
3.600
April
380,000
5,900
May
350,000
5,600
June
290,000
5,000
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