Question: Complete the table by estimating the cost formula. For mixed costs, use the high-low method. (Round variable cost to 2 decimal places, e.g. 15.25 when
Complete the table by estimating the cost formula. For mixed costs, use the high-low method. (Round variable cost to 2 decimal places, e.g. 15.25 when entering answer for the VC and fixed cost to the nearest whole dollar, e.g. 5,275. Use the entire (unrounded) value of the variable cost when calculating the FC).
| ACTIVITY LEVEL | COST FORMULA | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 840UNITS | 1,680UNITS | 2,520UNITS | VC + FC | ||||||||||
| Cost 1 | $11,600 | $11,600 | $11,600 | $Enter a dollar amount rounded to 2 decimal places (units) | + | $Enter a dollar amount rounded to the nearest whole | |||||||
| Cost 2 | $5,112 | $5,212 | $5,312 | $Enter a dollar amount rounded to 2 decimal places (units) | + | $Enter a dollar amount rounded to the nearest whole | |||||||
| Cost 3 | $4,340 | $8,680 | $13,020 | $Enter a dollar amount rounded to 2 decimal places (units) | + | $Enter a dollar amount rounded to the nearest whole | |||||||
| Cost 4 | $0.02/unit | $0.02/unit | $0.02/unit | $Enter a dollar amount rounded to 2 decimal places (units) | + | $Enter a dollar amount rounded to the nearest whole | |||||||
| Cost 5 | $618/unit | $309/unit | $206/unit | $Enter a dollar amount rounded to 2 decimal places (units) | + | $Enter a dollar amount rounded to the nearest whole | |||||||
| Cost 6 | $153/unit | $78/unit | $53/unit | $Enter a dollar amount rounded to 2 decimal places (units) | + | $Enter a dollar amount rounded to the nearest whole | |||||||
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
