High-Low Method on estimating cost behavior
Not what you're looking for?
Gentlemen produces and packages his own brand applesauce. A high low cost behavior needs to happen on the inventory on the company's energy cost behavior.
Month Pints of applesauce produced Energy cost
Jan. 35,000 $23,400
Feb. 21,000 22,100
Mar. 22,000 22,000
Apr. 24,000 22,450
May 30,000 22,900
Jun. 32,000 23,350
Jul. 40,000 28,000
Aug. 30,000 22,800
Sep. 30,000 23,000
Oct. 28,000 22,700
Nov. 41,000 24,100
Dec. 39,000 24,950
a. Figure the high-low method to estimate the company's energy cost behavior and express it in equation form.
b. Predict the enery cost for a month in which 26,000 pints of applesauce are produced.
Purchase this Solution
Solution Preview
a. Figure the high-low method to estimate the company's energy cost behavior and express it in equation form.
Highest Applesauce produced = 41,000 ; asociated energy cost = 24,100
Lowest ...
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
Recent Feedback
- "Your explanation to the answers were very helpful."
- "What does 1 and 0 means in the repair column?"
- "Went through all of the formulas, excellent work! This really helped me!"
- "try others as well please"
- "Thank you, this helped a lot. I was not sure how to plug in those numbers to a formula. This was a great help. Now I have to figure out how to explain cost of capital is used in net present value analysis, and how cost of capital is used in net present value analysis. This stuff gets confusing."
Purchase this Solution
Free BrainMass Quizzes
Operations Management
This quiz tests a student's knowledge about Operations Management
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Basics of corporate finance
These questions will test you on your knowledge of finance.