Question: a . What are fixed costs? Assume that the linear relationship assumption is appropriate within the relevant range of 0 to 1 4 , 0

a.What are fixed costs? Assume that the linear relationship assumption is appropriate within the relevant range of 0 to 14,000 units. The company uses the high-low method to separate total costs by cost behavior.
b.What is the contribution margin per unit?
c.Is it appropriate to use this information to project operating income at 17,000units? Why or why not?
d.For which decisions is this information useful when costs are broken down by cost behavior?
e.What other internal and external information would be relevant to understand profit predictions, pricing, performance evaluation, and customer demand?
a . What are fixed costs? Assume that the linear

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