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svp
6 days ago
10

Bonita Industries used high-low data from June and July to determine its variable cost of $12 per unit. Additional information f

ollows: Month Units produced Total costs June 2200 $32400 July 600 13200 If Bonita’s produces 1300 units in August, how much is its total cost expected to be?
Business
1 answer:
harina [3.8K]6 days ago
4 0

Answer:

Total cost = $25,200

Explanation:

Based on the following data:

Unit variable cost = $12

Produced units - total cost:

June: 2,200 - $32,400

July: 600 - $13,200

August = 1,600 units

Initially, we must identify the fixed costs:

Fixed costs = total cost - total variable cost

June = 32,400 - 12*2,200= $6,000

July = 13,200 - 12*600= $6,000

Next, we can compute the total cost for 1,600 units

Total cost = 6,000 + 12*1,600= $25,200
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