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Question - Moon Company makes product S1 and has the following costs at the given levels of production:
Month
Units Produced
Total Costs
January
150
120,000
February
225
135,000
March
300
150,000
April
375
165,000
May
450
180,000
June
525
195,000
Required -
1. Use the high-low method to compute the variable and fixed elements of Moon's total costs.
2. Estimate the total cost of making 750 items of S1, assuming that total fixed costs and the variable cost rate do not change.
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