Question #3: Amelia Enterprises has presented the following information for the past three months operations:
Month | Unit | Average Cost |
June | 2,400 | $10.00 |
July | 4,800 | $6.00 |
August | 6,000 | $5.20 |
a. Using the high-low method, calculate the fixed cost per month
and variable cost per unit.
b. What would total costs be for a month with 5,000 units
produced?
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