Beard Enterprises Has Collected the Following Data in Order to Analyze

question 5

Essay

Beard Enterprises has collected the following data in order to analyze the behavior of their costs:
$$\begin{array} { | c | c | c | } \hline \text { Month } & \text { Units Produced } & \text { Total Cost } \\\hline \text { January } & 17,500 & \$ 20,500 \\\hline \text { February } & 27,500 & \$ 21,500 \\\hline \text { March } & 25,000 & \$ 25,000 \\\hline \text { April } & 35,000 & \$ 21,500 \\\hline \text { May } & 47,500 & \$ 25,500 \\\hline \text { June } & 22,500 & \$ 18,500 \\\hline\end{array}$$
a.Using the high-low method,calculate the variable cost per unit and the estimated fixed costs.
b.Using the resulting relationship,predict the costs if they produce 28,000 units in a future period.

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