Shatner Inc. (Solved accurately and correctly) - 68821

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  • Posted on: Fri 11 Jul, 2014
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Shatner 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   7,500                Total Cost   $600,000

                           12,500                                   $ 725,000

                           20,000                                    $ 800,000


A, Determine the variable cost per unit and the fixed cost.


B. Based on part (a) estimate the total cost for 10,000 units of production.

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Shatner Inc Sol...