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Question - A plastic product is manufactured by SLT Company. For total costs, the company estimates the cost function. The number of units is the cost driver. The following details were gathered:
Month
Units
Total Cost (SAR)
March
4,370
44,300
April
4,680
44,600
May
5,000
45,000
June
5,300
45,400
July
5,600
47,500
August
5,900
57,500
September
3,400
40,000
October
4,100
40,625
Use the high-low analysis method and answer the following:
1. Calculate Variable Costs and fixed costs.
2. Determine the cost function.
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