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zaharov [31]
3 years ago
14

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. Type A Type B Type C Total 5,000 units $ 4 $ 9 $ 4 $ 17 7,500 units 4 6 3 13 If Shum produces 10,000 units, the total cost would be: Multiple Choice $90,000. $100,000. $110,000. $125,000. None of the answers is correct.
Business
1 answer:
dsp733 years ago
5 0

Answer:

$110,000

Explanation:

Variable cost is determined by high-low method:

Type A = $50,000

Type B = 0

Fixed cost determined using high low method is:

Type A = 0

Type B = $60,000

The total cost of high low method is $110,000.

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Answer:

A. $ 24,000

Explanation:

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As such, only $24,000 of the $48,000 received is included in Jerry’s current-year income.

3 0
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i = 8%

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6 0
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