In applying the high-low method of cost estimation to mixed costs, how is the total fixed...

In applying the high-low method of cost estimation to mixed costs, how is the total fixed cost estimated?
If fixed costs increase, what would be the impact on the (a) contribution margin? (b) income from operations?
An examination of the accounting records of Clowney Company disclosed a high contribution margin ratio and production at a level below maximum capacity. Based on this information, suggest a likely means of improving income from operations. Explain.

Expert Solution

ekkarill92 answered 2 years ago

Discuss what fixed, variable, and mixed costs are and the high-low method for dealing with mixed...

Discuss what fixed, variable, and mixed costs are and the high-low method for dealing with mixed costs

Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.

The manufacturing costs of Ackerman Industries for the first three months of the year follow:ParticularsTotal costUnits producedJanuary$1,900,00020,000 unitsFebruary2,250,00027,000March2,400,00030,000Using the high low method,Determine (a) the variable cost per unit and (b) the total fixed cost

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1. When using the high-low method for estimating the fixed and variable portion of a mixed...

1. When using the high-low method for estimating the fixed and variable portion of a mixed cost, you must first find the high and low points of sales. Then, to find the variable cost per unit, you must: Select one: a. Divide the difference in unit sales by the difference in total cost b. Divide the difference in total cost by the difference in unit sales c. Divide the difference in dollar sales by the difference in total cost d....

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QUESTION ONE: MIXED COSTS WITH THE HIGH-LOW METHOD Addy Whyte Limited has estimated its total factory overhead costs at both minimum and maximum levels of production for the next period as given below: Minimum level of production 185,000 machine hours Maximum level of production 250,000 machine hours The total factory overhead, made up of variable costs, mixed costs and fixed costs, was estimated as $1,231,000 for 250,000 machine hours and $1,068,500 for 185,000 machine hours. At the minimum production level...

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Briefly describe variable, fixed, mixed, and step costs, and indicate how the total cost function of...

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Assume a merchandising company uses the high-low method to separate any mixed costs into their variable...

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