Global Publishers has collected the following data for recent months: Month March April May June Issues published 20,500 21,800 17,750 21,200 Total cost $20,960 22,464 18,495 21,395 Required: a. Using the high-low method, find variable cost per unit, total fixed costs, and the total cost equation. Round the variable cost to two decimal places.

Global Publishers has collected the following data for recent months: Month March April May June Issues published 20,500 21,800 17,750 21,200 Total cost $20,960 22,464 18,495 21,395 Required: a. Using the high-low method, find variable cost per unit, total fixed costs, and the total cost equation. Round the variable cost to two decimal places.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 61P: Method of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a...

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Question

Global Publishers has collected the following data for recent months:
Month
March
April
May
June
Issues published
20,500
21,800
17,750
21,200
Total cost
Variable cost per unit $
Total fixed costs $
Required:
a. Using the high-low method, find variable cost per unit, total fixed costs, and the total cost equation. Round the variable cost to two decimal places.
$20,960
22,464
18,495
21,395
per unit
Total cost = $
x Number of issues published)
b. What is the estimated cost for a month in which 19,000 issues are published?

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