Dave's Dogs sells steamed hot dogs for $2.50 each. The company provided the following units and...
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Dave's Dogs sells steamed hot dogs for $2.50 each. The company provided the following units and total cost data concerning its hotdog sales for the last six months of 2017: July August September October November December Cost $3,020 2,795 3,040 2,700 2,750 3,085 Units 2,400 2,150 2,300 2,250 2,160 2,340 I a. Use the high-low method to estimate fixed and variable costs. b. Estimate total profit in a month when 2,200 hotdogs are sold. C. Based on these estimates, calculate the number of hotdogs that must be sold to break- even. d. How does linear regression differ from the high-low method in estimating fixed and variable costs? Dave's Dogs sells steamed hot dogs for $2.50 each. The company provided the following units and total cost data concerning its hotdog sales for the last six months of 2017: July August September October November December Cost $3,020 2,795 3,040 2,700 2,750 3,085 Units 2,400 2,150 2,300 2,250 2,160 2,340 I a. Use the high-low method to estimate fixed and variable costs. b. Estimate total profit in a month when 2,200 hotdogs are sold. C. Based on these estimates, calculate the number of hotdogs that must be sold to break- even. d. How does linear regression differ from the high-low method in estimating fixed and variable costs?
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Answer rating: 100% (QA)
a ANSWER To estimate fixed and variable costs using the highlow method we need to identify the highest and lowest level of activity in this case the n... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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