Problem 4-9 

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Problem 4-9 Rhetorix, Inc., produces stereo speakers. Each unit (a pair of speakers) sells for $870. Below is information on production/sales and costs for 2013 Production and Production selling and Admin Sales in Units Costs Costs $23,400 January 105 $88,200 February 97,100 25,000 March 98 83,600 22,500 23,800 Apr 106 89,600 May 115 96,000 24,200 26,600 103,800 June 125 105,900 26,400 July 128 27,400 108,500 August 133 September 137 112,031 27,843 October 104,600 126 26,200 102,000 November 122 26,100 23,800 December 106 91,000 $303,243 1,418 $1,182,331 Tota $833.80183 $213.85261 Average cost per unit Use the high-low method to identify the fixed and variable cost components for both production costs and selling and administrative costs Fixed cost Variable cost Production costs Selling and administrative costs The company estimates that production and sales in 2014 will be 1,700 units. Based on this estimate, forecast income before taxes for 2014