Crux, Inc., produces amplifiers. Each unit sells for $900. Below is information on production/sales and costs for 2016:

	Production and Sales in Units	Production Costs	Selling and Admin. Costs
January	105	$ 88,860	$ 23,570
February	117	$97,600	$25,200
March	97	$83,007	$22,495
April	106	$89,600	$23,720
May	115	$96,200	$24,950
June	125	$103,500	$26,250
July	128	$105,670	$26,690
August	132	$108,550	$27,200
September	138	$112,978	$28,030
October	126	$104,200	$26,400
November	124	$102,750	$26,150
December	108	$91,050	$23,990
Total	1,421	$1,183,965	$ 304,645
Average cost per unit		$833.19141	$214.38776

REQUIRED:

a. Use the high-low method to identify the fixed and variable cost components for both production costs and selling and administrative costs.

b. The company estimates that production and sales in 2017 will be 1,650 units. Based on this estimate, forecast income before taxes for 2017.

Answer rating: 100% (QA)

Required solution Requirement a Variable Production cost Unit Production cost HighSep 138 112978 Low... View the full answer