Chapter 2, Problem 2.10P

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Financial accounting problem

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Using the High-Low method, calculate the total fixed costs and variable cost per unit based on the following production data: Months Total Cost ($) Units Produced June 390,000 12,000 July 570,000 22,000 August 480,000 18,000 September 630,000 26,000 October 450,000 16,000 What are the total fixed costs? a. $150,000 b. $210,000 c. $180,000 d. None of the above

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