Make sure any calculations are clearly shown. a) Complete the chart, showing manufacturing cost at various levels...

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Accounting

Make sure any calculations are clearly shown.
a) Complete the chart, showing manufacturing cost at variouslevels of production for Company X
Volume (units)
10,000
20,000
30,000
40,000
Cost A
$25,000
$25,000
$25,000
Cost B
$25,000
$50,000
$100,000
Cost C
$33,000
$48,000
$78,000
Unit cost
$8.30
b) What pattern do you observe in the behavior of unit cost?Explain briefly why this occurs.
c) Develop an equation in the form of Y = a +bX to forecasttotal manufacturing cost. Use this equation to forecast total costsat a level of 70,000 units.
d) Identify one reason why your forecast in c) may beunreliable.

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4.4 Ratings (995 Votes)

a Complete the chart showing manufacturing cost at various levels of production for Company X Volume units 10000 20000 30000 40000 Cost A 25000 25000 25000 25000 Cost B 25000 50000 75000 100000 Cost C 33000 48000 63000 78000 See Answer

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Volume (units)	10,000	20,000	30,000	40,000
Cost A	$25,000	$25,000		$25,000
Cost B	$25,000	$50,000		$100,000
Cost C	$33,000	$48,000		$78,000

Unit cost	$8.30