Alden Co.’s monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs.

Required

1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method.
2. Use the answers for variable and fixed costs from part 1 to predict future total costs when sales volume is 

(a) 220,000 units and 

(b) 240,000 units.

Transcribed Image Text:

Month Units Sold Total Cost Month Units Sold Total Cost 1.... 320,000 $160,000 340,000 $220,000 .... 2.... 160,000 100,000 280,000 160,000 3.... 280,000 220,000 80,000 64,000 4 .... 200,000 100,000 10 160,000 140,000 ... 5.... 300,000 230,000 11 100,000 100,000 .... 6.... 200,000 120,000 12 110,000 80,000 ...