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Question:
(a) The following output levels and production costs have been recorded over the last three periods:
Required:
Using the high-low method, estimate the: (i) variable costs per unit;(ii) total fixed costs per period;(iii) total costs that would be incurred in a period at an output of 8,500 units.
(b) A company is launching a new product. The variable cost of the product is $4.50 per unit and fixed costs total $21,000 per period. The initial selling price is to be set by adding a mark-up of 10% to total unit cost based on estimated sales of 6,000 units per period. The company does not hold any inventory.
Required: Calculate the initial selling price of the product.
Which of the following was the first private sector entity that set accounting standards in the United States? a. Accounting Principles Board b. Committee on Acocounting Procedure
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