PLEASE INPUT YOUR FINAL ANSWERS IN COLUMN G

PROBLEM 1
HI-LOW METHOD
VARIBLE COST PER UNIT 10
TOTAL FIXED COST 26,000
LEAST SQUARES
VARIBLE COST PER UNIT 101
TOTAL FIXED COST (156,500)
PROBLEM 2
TOTAL COST $896000
 PROBLEM 1
HIGH -LOW METHOD Month
b=(𝑌2−𝑌1)/ January
(𝑋2−𝑋1) February
No. of Billets Electricity Cost March
Highest month (Oct.) 2400 50000 April
Lowest month (July) 1400 40000 May
ANSWER June
Variable Cost = 50000-40000/2400-1400 = 10 July
Fixed Cost = a = Y- bX 26000 August
September
Highest activity level a= 50000 - 10(2400) 26000 October
Lowest activity level a= 40000 - 10(1400) 26000 November
December
LEAST SQUARE METHOD

12(1112100000)-(24000)(552000) / 12(48800000)-(24000)^2
Variable Cost Per Unit 101.25

552000-101.25(24000) / 12
Fixed Cost -156500

PROBLEM 2
Salary + Operating Cost + Advertising + [(COGS + Commission / Televisions sold] x expected units to sell
Salary 70000
Operating Cost 157000
Advertising 15000
COGS 400000
Commission 36000
Televisions sold 2000
Expected units to sell 3000

70000+157000+15000+[(400000+36000)/2000]x3000
Estimated total costs $896000
 Y X XY X^2
Electricity Cost No. of Billets
45500 2000 91000000 4000000
45000 1800 81000000 3240000
43500 1900 82650000 3610000
48500 2200 106700000 4840000
47000 2100 98700000 4410000
47500 2000 95000000 4000000
40000 1400 56000000 1960000
45000 1900 85500000 3610000
43500 1800 78300000 3240000
50000 2400 120000000 5760000
49500 2300 113850000 5290000
47000 2200 103400000 4840000
552000 24000 1112100000 48800000

xpected units to sell