Chapter 2, Problem 27PSA

a)1.

To determine

Enter the number of units and their costs in rising order.

2.

To determine

Plot the above points on the graph

3.

To determine

Sketch a graph and draw a line to split all the points.

4.

To determine

Visual estimation of total cost to produce 2,000 units

b)1.

To determine

Determine total variable cost per unit using high-low method

2.

To determine

Determine the total fixed cost

3.

To determine

Sketch a line among the high and low points on the graph

4.

To determine

Compute the total cost when 2,000 cabinets are made using high and low method

c)

To determine

The best method