JUST NEED HELP WITH B PLEASE: Myrick Woodcraft Company (MWC) manufactures antique wooden cabinets to...
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Accounting
JUST NEED HELP WITH B PLEASE: Myrick Woodcraft Company (MWC) manufactures antique wooden cabinets to house modern televisions. MWC began operations in January of last year. Sidney Myrick, the owner, asks for your assistance. He believes that he needs to better understand the cost of the cabinets for pricing purposes. You have collected the following data concerning actual production over the past year:
Month
Number of Cabinets Produced
Total Cost
January
800
$
21,000
February
3,600
32,500
March
1,960
29,500
April
600
18,600
May
1,600
29,000
June
1,300
27,000
July
1,100
25,600
August
1,800
31,000
September
2,280
32,000
October
2,940
31,500
November
3,280
32,000
December
400
16,500
Required
To understand the departments cost behavior, you decide to plot the points on graph paper and sketch a total cost line.
(1) Enter the number of units and their costs in increasing order.
Using the high-low method, compute the total cost equation for the preceding data.
(1) Compute the variable cost per unit.
(2) Compute total fixed costs.
(4) Calculate the total cost assuming 2,000 cabinets are made.
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