Diamond Inc. has decided to use the high-low method to estimate the total cost and the fixed

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Diamond Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:

Units Produced Total Costs

12,000..................... $424,000

15,000..................... 496,000

21,000..................... 640,000

a. Determine the variable cost per unit and the total fixed cost.

b. Based on part (a), estimate the total cost for 17,000 units of production.

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Financial and Managerial Accounting

ISBN: 978-1285866307

13th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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Question Posted: Jun 16, 2016 01:44 AM

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Diamond Inc. has decided to use the high-low method to estimate the total cost and the fixed

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a b Based on 12000 units Total variable cost 408000 Total fixed cost from above 136000 Total c...View the full answer

Financial and Managerial Accounting

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