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QUESTION 1
Inspection costs at one of Ratulowski Corporation's factories are listed below:
| | Units Produced | Inspection Costs | |
| April | | 906 | | $ | 16,312 | |
| May | | 951 | | $ | 16,700 | |
| June | | 912 | | $ | 16,365 | |
| July | | 896 | | $ | 16,210 | |
| August | | 918 | | $ | 16,394 | |
| September | | 903 | | $ | 16,280 | |
| October | | 920 | | $ | 16,432 | |
| November | | 860 | | $ | 15,850 | |
| December | | 899 | | $ | 16,238 | |
| | | | | | | | |
Management believes that inspection cost is a mixed cost that depends on units produced.
Calculate the following using the high-low method:
| Variable Cost per unit produced (round to 2 decimal place) | $ |
| Overall Fixed Cost portion of Inspection Costs (round to 2 decimal place) | $ |
| Cost equation for Inspection Costs (in the linear equation format) | Y= |
| Estimated Inspection costs when 973 units are produced (round to nearest whole dollar) | $ |
12 points
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