W & O Inc. has decided to use the high-low method to estimate the total cost and

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W & O Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:

Units

Produced Total Costs

10,000 $750,000

22,500 845,000

30,000 950,000

a. Determine the variable cost per unit and the fixed cost.

b. Based on part (a), estimate the total cost for 25,000 units of production.

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Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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Question Posted: Jul 17, 2012 07:23 AM

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W & O Inc. has decided to use the high-low method to estimate the total cost and

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a The fixed cost can be determined by subtracting the estimated total variable cost fro...View the full answer

Accounting

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