Question: Warner 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 2,070 1,200 $210,500 158,400 3,200 Required: 246,400 a) Determine the variable cost per unit and the total fixed cost. (Round to nearest dollar) b) Based on part (a), estimate the total cost for 1,580 units of production.
Question: Warner 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 2,070 1,200 $210,500 158,400 3,200 Required: 246,400 a) Determine the variable cost per unit and the total fixed cost. (Round to nearest dollar) b) Based on part (a), estimate the total cost for 1,580 units of production.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Warner 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
2,070
1,200
$210,500
158,400
3,200
Required:
246,400
a) Determine the variable cost per unit and the total fixed cost.
(Round to nearest dollar)
b) Based on part (a), estimate the total cost for 1,580 units of production.
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