Gabel Industries Has Collected the Following Data in Order to Analyze

question 146

Essay

Gabel Industries has collected the following data in order to analyze the behavior of their costs: $\begin{array}{|c|c|c|}\hline \text { Month } & \text { Units Produced } & \text { Total Cost } \\\hline \text { January } & 8,750 & \$ 40,500 \\\hline \text { February } & 13.750 & \$ 41,500 \\\hline \text { March } & 12,500 & \$ 45,000 \\\hline \text { April } & 17,500 & \$ 41,500 \\\hline \text { May } & 23,750 & \$ 45,500 \\\hline \text { June } & 11,500 & \$ 38,500 \\\hline\end{array}$
(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 18,500 units in a future period.

---

Definitions:

Emotional Support

Assistance provided by expressing love, care, empathy, and encouragement to help manage stress and improve well-being.

Difficult Children

Children who exhibit challenging behaviors more intensely and frequently than typical children, often due to temperament, environmental, or biological factors.

Psychological Disorders

Mental disorders characterized by patterns of behavior or thought that significantly impact multiple areas of life and cause distress for the individual.

Adjustment Problems

Difficulties in coping with new, challenging situations that can lead to psychological stress or behavioral issues.