The Following Is Information About the Units Produced and the Total

question 70

Essay

The following is information about the units produced and the total manufacturing costs for Rose's Rug Company for the past six months.

Rose's Rug Company uses the high-low method to estimate its costs.Answer the following questions:
a.What is the variable cost per unit?
b.What is the monthly fixed manufacturing cost?
c.Write the cost equation that could be used to predict Rose's Rug Company's total manufacturing costs.
d.What will the total monthly manufacturing costs be if the company produces 28,000 units?

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Definitions:

Hats

A headwear item designed for various purposes including protection from weather, ceremonial reasons, religious reasons, safety, or fashion.

Production

The method of integrating different physical and non-physical inputs, such as materials and ideas, to produce goods for use.

Opportunity Costs

Missing out on potential benefits from various options due to the selection of a single alternative.

Trade

The practice, in a market economy, in which individuals provide goods and services to others and receive goods and services in return.