McNeil uses the high-low method of estimating costs. McNeil had total costs of $58,000 at its lowest level of activity when 8,000 units were sold. When, at its highest level of activity, sales equaled 12,000 units, total costs were $76,000. Required: What would McNeil estimate its total cost to be if sales equaled 8,100 units?

McNeil uses the high-low method of estimating costs. McNeil had total costs of $58,000 at its lowest level of activity when 8,000 units were sold. When, at its highest level of activity, sales equaled 12,000 units, total costs were $76,000. Required: What would McNeil estimate its total cost to be if sales equaled 8,100 units?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 14E: A company has prepared the following statistics regarding its production and sales at different...

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