Maintenance costs at Planet Corporation factory are listed below: April May June July Machine-Hours Maintenance Cost...

  

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Maintenance costs at Planet Corporation factory are listed below: April May June July Machine-Hours Maintenance Cost 3,135 September October 3,095 3,133 3,157 3,065 3,084 November 3,125 December 3,098 $48,340 $47,993 $48,345 $48,548 $47,733 $47,880 $48,247 $48,014 Management believes that maintenance cost is a mixed cost that depends on machine-hours. Use the high-low method to estimate the variable and fixed components of this cost. 1. What is the variable cost per unit? 2. What is the fixed cost? 3. What is the cost equation? Maintenance costs at Planet Corporation factory are listed below: April May June July Machine-Hours Maintenance Cost 3,135 September October 3,095 3,133 3,157 3,065 3,084 November 3,125 December 3,098 $48,340 $47,993 $48,345 $48,548 $47,733 $47,880 $48,247 $48,014 Management believes that maintenance cost is a mixed cost that depends on machine-hours. Use the high-low method to estimate the variable and fixed components of this cost. 1. What is the variable cost per unit? 2. What is the fixed cost? 3. What is the cost equation?

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The highlow method is a technique used to estimate the variable and fixed components of a mixed cost ... View the full answer