a) Given that the variable cost is (2.5/bottle, calculate the fixed costs. Use the data up to June for your calculation.

b) Calculate the number of bottles for July.

 c) Calculate the opportunity cost from June to July.

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ABC LTD produces bottles for a new soft drink. The activity levels and costs are shown below: Batch January February March April May June July Number of bottles 5600 5100 4700 4400 4900 3800 ? Cost 75000 70000 65000 60000 55000 50000 60000 ABC LTD produces bottles for a new soft drink. The activity levels and costs are shown below: Batch January February March April May June July Number of bottles 5600 5100 4700 4400 4900 3800 ? Cost 75000 70000 65000 60000 55000 50000 60000

Answer rating: 100% (QA)

Answers and Explanation a To calculate the fixed costs we need to use the highlow method The highest ... View the full answer