Question: Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and

Shum Manufacturing, which uses the high-low method, makes a product called Kwan.

 

Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. 5,000 units 7,500 units Type A $5 5 Type B Type c $12 $5 8 4 If Shum produces 10,000 units, the total cost would be: Total $22 17

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