font Paragraph Part 2 - Answer the following questions Question 2 (30 marks A AAA Company accumulates the following data concerning a mixed cost, using miles as the activity level. January February March April Miles Driven 10,000 8,000 9,000 Total Cost $15,625 13,500 14,400 12,500 7,500 Required: 1. Compute the variable and fixed cost elements using the high-low method 2. If it is estimated that 15.000 miles will be driven in May, what is the expected total cost for May 3. Explain the various methods used to estimate the variable component and the fixed component of the mixed cost and state which method is the most accurate? Why? (12.5 Marks) B-XYZ Manufacturing Company has fixed costs $240,000, it sells its only product at $50 per unit. For every $1 generated by the sale of their product, they have $0.20 that contributes to fixed costs and profit Required 1. Calculate the variable cost per unit. 2. Assume that the company plans to sell 20.000 units this year. In your opinion, would the Company be better off with this plan? Support your answer with necessary calculations 3. How many units the company needs to sell to start making profit? Why? Prove your answer (12.5 marks) C. The calculation of cost of soods sold does not differ between merchandising companies and