The following information is taken from Sweeping Broom Manufacturing Company (A+)

The following information is taken from Sweeping Broom Manufacturing Company

Number of Total

Brooms produced Production Cost

January 9,800 $17,100

February 7,000 15,000

March 8,000 16,000

April 7,500 15,500

May 10,100 17,200

June 9,000 17,000

July 10,500 19,000

August 11,600 20,000

September 10,600 18,200

October 8,500 16,800

November 12,100 20,500

December 11,000 18,000

Required:

1- Using the high-low method, determine the following.

The variable production cost per unit.
The total fixed production cost.
The expected production cost to produce 12,000 brooms.

2- Refer to the Problem.

Use Microsoft Excel to prepare a scatter graph for the data presented.
Estimated the total fixed production cost.
Estimate the expected production cost to produce 12,000 brooms.

Click here for the SOLUTION

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