The Stamford Times has determined that the annual printing of 900,000 newspapers costs 14 cents per copy. If production were to be increased to 1,500,000 copies per year, the per-unit cost would drop to 9 cents per copy. 1. Using the high-low method, determine the total fixed and variable costs of printing 900,000 newspapers. 2. Using the fixed and variable
Chapter 21, Practice Exercises #28
The Stamford Times has determined that the annual printing of 900,000 newspapers costs 14 cents per copy. If production were to be increased to 1,500,000 copies per year, the per-unit cost would drop to 9 cents per copy.
1. Using the high-low method, determine the total fixed and variable costs of printing 900,000 newspapers.
2. Using the fixed and variable costs you determined in part (1), what would be the total cost of producing 1,000,000 copies?
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1. Computations Units Produced Costs High 1,500,000 $135,000 ($0.09 x 1,500,000)…View the full answer
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