Handy Hiking produces backpacks. In the previous year, its highest and lowest production levels occurred in July and January, respectively. In July, it produced 4,100 backpacks at a total cost of $115,000. In January, it produced 2,600 backpacks at a total cost of $88,000. Using the high/low method, the average variable cost per of producing a backpack was:

Handy Hiking produces backpacks. In the previous year, its highest and lowest production levels occurred in July and January, respectively. In July, it produced 4,100 backpacks at a total cost of $115,000. In January, it produced 2,600 backpacks at a total cost of $88,000. Using the high/low method, the average variable cost per of producing a backpack was:

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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Handy Hiking produces backpacks. In the previous year, its highest and lowest production levels occurred in July and January, respectively. In July, it produced 4,100 backpacks at a total cost of $108,000. In January, it produced 2,600 backpacks at a total cost of $87,000. Using the high/low method, the total estimated fixed cost was: a. 108,000 b. 57,400 c. 50,600 d. None of the answer is correct
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