Solution-Compute the variable and fixed elements of moon

Compute the variable and fixed elements of moon total costs

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Reference no: EM133163772

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.

Reference no: EM133163772

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Compute the variable and fixed elements of moon total costs

Reference no: EM133163772

Reference no: EM133163772

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