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Phenix Corporation reports following information regarding its sales and cost of sales. Draw the estimated line of cost behavior by using the scatter diagram, and evaluate fixed costs and variable costs per unit sold. Then use the high-low method to estimate the fixed and variable components of the cost of sales.
Period Units Sold Cost of Sales Period Units Sold Cost of Sales1 0 $2,500 6 2,000 5,5002 400 3,100 7 2,400 6,1003 800 3,700 8 2,800 6,7004 1,200 4,300 9 3,200 7,3005 1,600 4,900 10 3,600 7,900
Explain these objections to the accountant's convention cost-volume-profit model
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Martin Company is a two-division firm and has following information available for this year:
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What are some of the potential problems which might be encountered in changing from a budget to a cost estimation movie making system?
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