Question: Please calculate part a and b. PROBLEM 4-3. High-Low, Break-Even Rykor Electronics produces a high-end compact disc player that sells for $1,200. Total operating expenses
Please calculate part a and b.
PROBLEM 4-3. High-Low, Break-Even Rykor Electronics produces a high-end compact disc player that sells for $1,200. Total operating expenses for the past 12 months are as follows: Required a. Use the high-low method to estimate fixed and variable costs. b. Based on these estimates, calculate the break-even level of sales in units. c. Calculate the margin of safety for the coming August assuming estimated sales of 150 units. d. Estimate total profit assuming production and sales of 150 units. e. Comment on the limitations of the high-low method in estimating costs for Rykor Electronics
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