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How to Calculate the TOTAL COST

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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April 3, 2018 at 2:37 pm #444734
Anonymous
Inactive
- Topics: 2
- Replies: 0
Dear all,
I would most appreciated some help with the following exercise: step by step on how to do this one.
$ units
43000 6000
45250 6750
45800 7000
Above production of 6800 units a saving of $0.5/unit is made.
What is the estimated cost of producing 6900 units?
A. $45560
B. $45650
C. $45700
D. $45750
Thank you
Mary
April 4, 2018 at 6:32 am #444885
John Moffat
Keymaster
- Topics: 57
- Replies: 54832
This is asking you to apply the high-low method of cost estimation – it is explained in detail in our free lectures.
The lectures are a complete free course for Paper F2 and cover everything needed to be able to pass the exam well.
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