Omega Electronics recorded its highest total cost of $120,000 in September, when production volume was 22,000 units. The lowest total cost was $88,000 in March, when production volume was 12,000 units. What is the fixed cost per month?

Omega Electronics recorded its highest total cost of $120,000 in September, when production volume was 22,000 units. The lowest total cost was $88,000 in March, when production volume was 12,000 units. What is the fixed cost per month?

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 3DQ: Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What...

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Omega Electronics recorded its highest total cost of
$120,000 in September, when production volume
was 22,000 units. The lowest total cost was
$88,000 in March, when production volume was
12,000 units.
What is the fixed cost per month?

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