Question

Refer to the preceding exercise. The divisional controller at Serendipity Sound’s Minneapolis Division has estimated the following cost data for the division’s sound systems. (Assume there are no fixed costs.)
Quantity Produced Average Cost
and Sold per Month per Unit
20........................................................................................ $450
40........................................................................................ 425
60........................................................................................ 410
80........................................................................................ 430
100...................................................................................... 445

Required:
1. Prepare a table similar to panel C of Exhibit 15–2 summarizing Serendipity Sound’s cost relationships.
2. Draw a graph similar to panel A of Exhibit 15–2 reflecting the data tabulated in requirement (1).



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  • CreatedApril 22, 2014
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