Mendoza Company's highest point of total cost was $85,000 in June. Their point of lowest cost was $60,000 in January. The company makes a single product. Production volume in June and January was 16,000 and 9,000 units, respectively. What is the fixed cost per month? Round your final answer to the nearest whole dollar.

Mendoza Company's highest point of total cost was $85,000 in June. Their point of lowest cost was $60,000 in January. The company makes a single product. Production volume in June and January was 16,000 and 9,000 units, respectively. What is the fixed cost per month? Round your final answer to the nearest whole dollar.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 3DQ: Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What...

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What is the fixed cost per month?
What is the fixed cost per month? For this accounting question
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