High low, break even. Lancer audio produces a high-end DVD player that sells for 1250. Total
Question:
High low, break even.  Lancer audio produces a high-end DVD player that sells for 1250. Total operating expenses for the past 12 months are as follows:
Required:
a. Use the high-low method to estimate fixed and variable cost.
b. Based on these estimates, calculate the break-even level of sales in units.
b. Calculate the margin of safety for the coming august assuming estimated sales of 160 units.
d. Estimate total profit assuming production and sales of 160 units.
e. Comment on the limitations of high-low method in estimating costs for Lanceraudio
Transcribed Image Text:
August September October November December January February March April May June July 125 145 150 160 165 140 145 135 130 135 145 140 112,670 121,990 129,500 131,500 139,700 117,400 125,600 115,400 116,140 119,220 121,700 119,050
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a Units produced Cost August 125 112670 Lowest September 145 121990 October 150 129500 November 160 ...View the full answer
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