Alden Co.s monthly unit sales and total cost data for its operating activities of the...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Alden Co.s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs.
| Month | Units Sold | Total Cost | Month | Units Sold | Total Cost | |||||||||||||||
| 1 | 320,000 | $ | 160,000 | 7 | 340,000 | $ | 220,000 | |||||||||||||
| 2 | 160,000 | 100,000 | 8 | 280,000 | 160,000 | |||||||||||||||
| 3 | 280,000 | 220,000 | 9 | 80,000 | 64,000 | |||||||||||||||
| 4 | 200,000 | 100,000 | 10 | 160,000 | 140,000 | |||||||||||||||
| 5 | 300,000 | 230,000 | 11 | 100,000 | 100,000 | |||||||||||||||
| 6 | 200,000 | 120,000 | 12 | 110,000 | 80,000 | |||||||||||||||
1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.)
2. Predict future total costs when sales volume is (a) 200,000 units and (b) 300,000 units.
| |||||||||||||||||||
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.