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

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Evander 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 total fixed cost.
b. Based on part (a), estimate the total cost for 400,000 units of production.

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Related Book For answer-question

Financial And Managerial Accounting

ISBN: 9780357714041

16th Edition

Authors: Carl S. Warren, Jefferson P. Jones, William Tayler

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Question Posted: Dec 09, 2022 02:29 AM

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

Question:

Units Produced 200,000 300,000 475,000 Total Costs $11,200,000 14,800,000 21,100,000

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a The fixed cost can be determined by subtracting the estimated total ...View the full answer

Financial And Managerial Accounting

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