Question: Shum Manufacturing, which uses the high-low method, makes a product called Jpop. The company incurs three different cost types (A, B, and C) and has
Shum Manufacturing, which uses the high-low method, makes a product called Jpop. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 7,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B Type C Total 5,000 units $ 19 $ 54 $ 19 $ 92 7,500 units 19 36 18 73 If Shum produces 7,000 units, the total cost would be:
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