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Sanders Bears produces stuffed animals. Sanders is in the process of implementing a cost forecastingsystem using the high-low method. The variable cost per animal is $2 and the high and low costs usedare $80,000 for 30,000 animals and $40,000 for 10,000 animals. What is the value of the fixed costfor the cost estimating equation?

Sanders Bears produces stuffed animals. Sanders is in the process of implementing a cost forecastingsystem using the high-low method. The variable cost per animal is $2 and the high and low costs usedare $80,000 for 30,000 animals and $40,000 for 10,000 animals. What is the value of the fixed costfor the cost estimating equation?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Sanders Bears produces stuffed animals. Sanders is in the process of implementing a cost forecasting
system using the high-low method. The variable cost per animal is $2 and the high and low costs used
are $80,000 for 30,000 animals and $40,000 for 10,000 animals. What is the value of the fixed cost
for the cost estimating equation?

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