Royal Enterprises has presented the following information for the past three months operations: Month June July August Units Total Cost 2,000 4,000 $ $ 24,000 6,000 $ 20,000 32,000 1. Using the high-low method, calculate the fixed cost per month and variable cost per unit. 2. What would total costs be for a month with 5,000 units produced?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Royal Enterprises has presented the following information for the past three months operations:
Month
June
July
August
Units Total Cost
2,000 $
4,000 $ 24,000
6,000 $
20,000
32,000
1. Using the high-low method, calculate the fixed cost per month and variable cost per unit.
2. What would total costs be for a month with 5,000 units produced?
Transcribed Image Text:Royal Enterprises has presented the following information for the past three months operations: Month June July August Units Total Cost 2,000 $ 4,000 $ 24,000 6,000 $ 20,000 32,000 1. Using the high-low method, calculate the fixed cost per month and variable cost per unit. 2. What would total costs be for a month with 5,000 units produced?
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