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# Stuart Woodcraft Company manufactures antique wooden cabinets to house modern televisions The Company began operations in January of last year Sidney Myrick the owner asks for your assistance

Stuart Woodcraft Company manufactures “antique” wooden cabinets to house modern televisions. The Company 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:

Required

To understand the department’s 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 2,100 cabinets are made.

Required A

Required B

Enter the number of units and their costs in increasing order.

Required A

Required B

Using the high-low method, compute the total cost equation for the preceding data. Compute the variable cost per unit, total fixed costs, and total cost assuming 2,100 cabinets are made. (Round “variable cost per unit” answer to 4 decimal places.)

 Number of Month Cabinets Produced Total Cost January 830 \$ 21,000 February 3,630 32,600 March 1,900 29,100 April 600 18,200 May 1,620 28,600 June 1,280 27,700 July 1,120 25,600 August 1,780 31,900 September 2,340 32,900 October 3,000 31,300 November 3,250 33,000 December 400 6,760

Mar 17 2020 Read more Less More