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Question - The following data have been extracted from the records of Puzzle lnc.:
February
August
Production level, in units
12,000
18,000
Variable costs
$21,000
$?
Fixed costs
?
31,000
Mixed costs
Total costs
$70,000
$88,000
Required -
a. Calculate the missing costs (Do not round intermediate calculations.)
b. Calculate the cost formula for mixed cost using the high-low method.
c. Calculate the total cost that would be incurred for the production of 20,000 units. (Do not round intermediate calculations.)
d. Identify the two key cost behavior assumptions made in the calculation of your answer to part c.
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