Estimate the amount of fixed cost incurred each month

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Reference no: EM133496589

Case: Baird Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in the spring and summer. Sales and production tend to decline in the fall and winter months. During year 2, the high point in activity occurred in June when it produced 210 boats at a total cost of $157,360. The low point in production occurred in January when it produced 34 boats at a total cost of $50,000. Required Use the high-low method to estimate the amount of fixed cost incurred each month by Baird Boat Company. Determine the total estimated cost if 110 boats are made.

a. Fixed Cost

b. Total estimated cost

Reference no: EM133496589

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