Adams Company makes a single product that it sells for $8.45 per unit. Provided below is...

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Adams Company makes a single product that it sells for $8.45 per unit. Provided below is information about this product for the past nine months: Month January February March April May June July August September Total Cost Incurred $28,730 $24,580 $30,660 $16,890 $19,120 $20,610 $17,490 $25,380 $15,540 Units Sold 6,400 5,150 6,900 2,950 3,600 4,150 3,350 5,500 2,700 Adams Company expects to sell 4,620 units of this product during October. Using the high-low method, calculate Adams Company's expected margin of safety for October. Adams Company makes a single product that it sells for $8.45 per unit. Provided below is information about this product for the past nine months: Month January February March April May June July August September Total Cost Incurred $28,730 $24,580 $30,660 $16,890 $19,120 $20,610 $17,490 $25,380 $15,540 Units Sold 6,400 5,150 6,900 2,950 3,600 4,150 3,350 5,500 2,700 Adams Company expects to sell 4,620 units of this product during October. Using the high-low method, calculate Adams Company's expected margin of safety for October.

Answer rating: 100% (QA)

To determine the expected margin of safety for October we will first need to calculate the fixed and variable costs using the highlow method and then ... View the full answer