Global Publishers has collected the following data for recent months:
Required:
a Using the high-low method, find variable cost per unit, total fixed costs, and the total cost equation.
b What is the estimated cost for a month in which 19,000 issues are published?
Definitions:
Multiple Products
The strategy or condition of manufacturing or selling a variety of different products, often to diversify risk or meet various consumer demands.
Operating Leverage Factor
A measure showing the degree to which a company can increase operating income by increasing revenue, emphasizing the fixed to variable costs ratio.
Net Profit
Net profit, also known as net income, is the amount of earnings remaining after all expenses, taxes, and costs have been subtracted from total revenues.
Variable Costs
Costs that vary in direct proportion to changes in the level of activity or production volume.
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