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Predict the total processing cost

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Reference no: EM132916585

Question - Below are the processing costs of Darnell Products observed over the last 10 months:

Month

Units Produced

Processing Cost

1

7,500

$44,000

2

11,000

60,000

3

14,500

58,550

4

5,500

20,000

5

9,000

47,000

6

8,500

52,000

7

3,500

25,000

8

7,000

41,000

9

11,500

52,000

10

6,000

41,000

Required -

a. Use the high low method to determine the variable cost per unit and fixed cost per month. Express your results in the form of a linear equation y = a + bx.

b. Predict the total processing cost if 17,000 units are produced.

Reference no: EM132916585

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