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NemiM [27]
3 years ago
10

Strait Co. manufactures office furniture. During the most productive month of the year, 3,300 desks were manufactured at a total

cost of $82,000. In the month of lowest production, the company made 1,130 desks at a cost of $59,000. Using the high-low method of cost estimation, total fixed costs are
Business
1 answer:
Elza [17]3 years ago
6 0

Answer:

Using the high-low method of cost estimation, total fixed costs are $47,020  

Explanation:

Cost at highest level of activity = $82,000.00

Cost at Lowest level of activity = $59,000.00

Highest level of activity = 3,300

Lowest Level of activity = 1,130

Variable cost per unit = $(82,000 - 59,000) ÷ (3,300 -1,130)  

Variable cost per unit = $23,000 ÷ 2,170  

Variable cost per unit = $10.60  

Fixed Costs = $82,000 - (3,300 × 10.60)  

Fixed Costs = $47,020  

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3 years ago
An economy is operating at an output level below potential real GDP. If the government wishes to use fiscal policy to bring the
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Answer:

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Explanation:

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7 0
2 years ago
An organization has experienced significant turnover among its creative writers. During exit interviews, the writers have expres
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2 years ago
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3 years ago
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6 0
3 years ago
Read 2 more answers
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