Business, 02.03.2021 02:10 star296

Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B Type C Total 5,000 units $ 4 $ 9 $ 4 $ 17 7,500 units 4 6 3 13 If Shum produces 10,000 units, the total cost would be:

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Answer from: crystalxolotp4q3la

For making 10,000 units

Type A cost = 40,000

Type B Cost = 90,000

Type C Cost = 25,000

Explanation:

Given - Shum Manufacturing, which uses the high-low method, makes a

product called Kwan. The company incurs three different cost

types (A, B, and C) and has a relevant range of operation between

2,500 units and 10,000 units per month. Per-unit costs at two

different activity levels for each cost type are presented below.

Type A Type B Type C Total

5,000 units $4 $9 $4 $17

7,500 units $4 $6 $3 $13

To find - If Shum produces 10,000 units, the total cost would be ?

Proof -

As we know that

Total cost = Variable cost per unit × Units + Fixed Cost

Now,

As per the question ,

Highest Activity unit = 7,500 units

Lowest Activity unit = 5,000 units

Now,

Variable cost per unit = Change in cost / Change in activity unit

= ( Highest Activity cost - Lowest Activity cost ) / ( Highest Activity unit - Lowest Activity unit )

Type A Type B Type C

Highest Activity Cost 30,000 45,000 22,500

Lowest Activity Cost 20,000 45,000 20,000

Variable Cost Per unit 4 0 1

Fixed Cost 0 90,000 15,000

Now,

Statement Showing Total Cost for 10,000 units

Particulars Type A Type B Type C

Variable Cost 40,000 0 10,000

Fixed Cost 0 90,000 15,000

Total 40,000 90,000 25,000

∴ we get

For making 10,000 units

Type A cost = 40,000

Type B Cost = 90,000

Type C Cost = 25,000

Answer from: Quest

The answer is yes it's correct they have to guarantee that job back when they come back

Answer from: Quest

Iam pretty sure a because if u are exiting you need to know the exit plan

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