PLEASE INPUT YOUR FINAL ANSWERS IN COLUMN G

PROBLEM 1
HI-LOW METHOD
VARIBLE COST PER UNIT 11
TOTAL FIXED COST 29,091
LEAST SQUARES
VARIBLE COST PER UNIT 10
TOTAL FIXED COST 34,485
PROBLEM 2
TOTAL COST 2,204,000
PROBLEM 1
HIGH-LOW METHOD
100,000 6,500
40,000 1,000
60,000 5,500

Variable cost per unit 11

Fixed Cost High Low

100,000 40,000
(10.90909091*6500) 70909.09091
(10.90909091*1000) 10,909
29,091 29,091

LEAST SQUARE x y
January 1,000 40,000
February 1,500 50,000
March 2,500 50,000
April 3,000 70,000
May 2,500 60,000
June 4,500 80,000
July 6,500 100,000
August 6,000 90,000
September 5,500 90,000
October 3,000 70,000
November 2,500 60,000
December 3,500 80,000
Total 12 42,000 840,000

Equation
(840000 = 12a + b42000)3500

Equation (2)
3,285,000,000 =

Equation (1) 2,940,000,000 =

345,000,000 =

b= 345000000/34000000
10.14705882

y = Na + bx 840000 =12a + (10.14705882)(42000)

840000 = 12a + 426176.4704
 12a = 840000 - 426176.4704
a = 413823.5296/12
a = 34485.29413

PROBLEM 2

Cost Variable per unit (400000+36000)/2000

218

Total Fixed Cost 70000+157000+15000

242,000

Total Cost (9000 units)

242000 + 218 (9000)
242000 + 1962000
2,204,000
 xy
40,000,000 1,000,000
75,000,000 2,250,000
125,000,000 6,250,000
210,000,000 9,000,000
150,000,000 6,250,000
360,000,000 20,250,000
650,000,000 42,250,000
540,000,000 36,000,000
495,000,000 30,250,000
210,000,000 9,000,000
150,000,000 6,250,000
280,000,000 12,250,000
3,285,000,000 181,000,000

3500

42000a + 181,000,000

42000 + 147,000,000

- + 34,000,000