Saratoga Company has assembled the following data about its variable costs: Level of Activity Total Variable Cost

Question:

Saratoga Company has assembled the following data about its variable costs:
Level of Activity Total Variable Cost
2,000 units..........$ 46,000
3,000 units.............72,000
4,000 units.............96,000
5,000 units........... 120,000
6,000 units........... 150,000
The company is currently producing 3,300 units. According to these data, what is the relevant range over which the company can assume that the variable cost per unit is constant?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

Question Posted: