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Production level, in units........... 5,000 10,000Variable costs........................... $12,000 $ ?Fixed costs.............................. ? 18,000Mixed costs............................ 10,000 ?Total costs............................. $40,000 $59,000
a. Calculate missing costs.
b. Calculate cost formula for mixed cost using the high-low method.
c. Calculate the total cost that would be incurred for the production of 8,000 units
d. Identify the two key cost of behavior assumptions made in the calculation of your answer to part c.
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