Presented Below Are the Production Data for the First Six

question 61

Essay

Presented below are the production data for the first six months of the year for the mixed costs incurred by Crew Industries.

Crew Industries uses the high-low method to analyze mixed costs.
(1)How would the cost function be stated? (Round results to the nearest cent. )
(2)What is the estimated total cost at an operating level of 5,000 units?

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Definitions:

Nature

The inherent qualities or characteristics of something; in accounting, it may relate to the types of expenses or incomes.

Function

In mathematics, a relationship or expression involving one or more variables.

Gross Profit Margin

A financial metric that represents the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of production.

Cost Of Goods Sold

Expenses directly associated with the creation of a company's sold products, including both materials and workforce costs.