Reference no: EM132622069

BCB & Company has the following information available about supplies cost for the first three months of the year 2020:

Problem 1: Using the high-low method, an estimate of supplies cost at 4,500 units of production would be

Select one:

a. $19,400.

b. $20,500.

c. $19,950.

d. none of the above.

Problem 2: Justine is considering the cost behaviour in his company. His company has a relevant range of operations between 2,500 units and 10,000 units per month. Per unit costs at two activity levels are as follows; 5,000 units $17.00 per unit, 7,500 units $13.00 per unit.

Determine their total cost if Yang produces 10,000 units.

Select one:

a. $100,000

b. $125,000

c. $130,000

d. Some other amount not listed here