During the first two months of operations, i.e. January and
February 2020, Hamzah Inc. produced 6163 and 9711 units of products
respectively. Maintenance costs in those two months were $110785,
$178810 respectively. The manager, Umar, initially considered
maintenance to be a fixed cost, but by the end of the second month
of operations, he realized that maintenance cost is probably a
mixed cost. He is expecting production and sales to increase to
17153 in the month of March and as such wants a better prediction
of maintenance cost.
(a) Using the high-low method, the estimated variable maintenance
cost per unit is $ ? unanswered
(b) Using the high-low method, the estimated total fixed
maintenance cost is $? unanswered
(c) Using the answers from (a) and (b), the best estimate of
maintenance cost for the month of March is $?
During the first two months of operations, i.e. January and February 2020, Hamzah Inc. produced 6163 and 9711 units of p
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