Shatner Inc. has decided to use the high-low method to estimate the total cost and the fixed

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Shatner Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:

a. Determine the variable cost per unit and the fixed cost.b. Based on part (a), estimate the total cost for 10,000 units ofproduction.

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Accounting

ISBN: 978-0324662962

23rd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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Question Posted: Sep 05, 2011 08:13 AM

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Shatner Inc. has decided to use the high-low method to estimate the total cost and the fixed

Question:

Units Produced Total Costs 7,500 12,500 20,000 $600,000 725,000 800,000

Step by Step Answer:

a Calculating the Variable Cost per unit and the Fixed Cost The fixed cost can be determ...View the full answer

Accounting

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